Investcorp launches $1bn fund to invest in GCC and China

Investcorp Golden Horizon platform will target companies in consumer, health care, logistics and business services sectors

The Investcorp Golden Horizon platform will be anchored by institutional and private investors from the GCC as well as the China Investment Corporation. Photo: Investcorp

Investcorp, an alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, has teamed up with China’s sovereign wealth fund to launch a $1 billion fund that will invest in high-growth companies in Saudi Arabia, other GCC countries and China as it continues to expand its global investment portfolio.

The Investcorp Golden Horizon platform will be anchored by institutional and private investors from the GCC, as well as the China Investment Corporation, Investcorp said in a statement on Wednesday.

Target companies are expected to have high growth potential in sectors such as consumer, health care, logistics and business services, it added.

“This commitment by CIC is a testament to Investcorp’s franchise in the GCC,” Mohammed Alardhi, executive chairman of Investcorp, said.

“We are looking forward to growing our partnership in the future.”

Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region.

The company went on an acquisition spree during the Covid-19 pandemic to capitalise on lower asset valuations and continued its aggressive portfolio expansion in 2022.

With $52 billion in assets under management, Investcorp is an active investor in mid-market companies across consumption-linked sectors.

It aims to double its assets under management to $100 billion in the coming years.

Investcorp has 14 offices across the US, Europe, GCC and Asia, including India, China and Singapore.

Last November, it listed its subsidiary Investcorp Capital, which offers capital financing services in the alternative investments space, on the Abu Dhabi Securities Exchange after it raised Dh1.66 billion ($451 million) by selling 720 million ordinary shares or 32.85 per cent of its total issued share capital.

Mohammed Alardhi, executive chairman of Investcorp, said the company is keen to build on the partnership with China's sovereign wealth fund. Khushnum Bhandari / The National

It also launched a $750 million climate-focused investment platform last December to invest in companies focused on developing innovative products and technology to reduce emissions globally.

“CIC has been actively investing in both developed and emerging economies. During the past couple of years, we have built several bilateral funds with leading financial institutions to facilitate industrial co-operation between China and major economies in the world,” Bin Qi, executive vice president and deputy chief investment officer of CIC, said.

“Currently we are working closely with Investcorp to build a similar bilateral fund to strengthen financial and industrial ties between China and GCC countries.”

The Investcorp Saudi Pre-IPO Growth Fund, which is part of the $1 billion platform, has already announced three investments in the GCC, the company said.

The fund is dedicated to investing in companies that are at the pre-initial public offering stage of development, Investcorp said in 2021 at its launch.

Investcorp is “perfectly placed” to facilitate cross border co-operation and investments between the GCC and China, according to co-chief executive Hazem Ben-Gacem.

He said that the fund would have a significant positive impact on businesses in both regions.