CIC, partners launch Europe-China growth fund

China Investment Corporation (CIC), the country's sovereign wealth fund, announced Thursday it has launched a joint growth fund with the Belgian Federal Holding and Investment Company and private equity firm A CAPITAL to invest into European groups to boost their growth in China.

The new fund is targeting solidly performing European midcaps with revenues over 100 million euros and strong growth potential in China, according to a joint statement released by the three companies.

The fund will primarily invest in leading European brands, technologies and distribution channels and invite Chinese private and state-owned strategic co-investors, according to the statement.

The first round of fundraising closed during an official signature ceremony attended by Chinese Vice Premier Li Keqiang and Belgian Prime Minister Elio di Rupo held at the Palais d'Egmont in Brussels.

The statement quoted Lou Jiwei, CIC chairman, as saying, "We are very pleased to invest into this promising fund that will broaden our access to leading European firms. This commitment is consistent with CIC's strategy to look for long-term investment opportunities in European market leaders."

CIC and its partners did not disclose the size of the new fund in the statement, but earlier media reports said the fund initially plans to invest between 30 million and 50 million euros (39 million U.S. dollars and 65 million U.S. dollars), and target investing 250 million euros in total.