Investcorp to increase investments in China’s tech sector

Artificial intelligence and e-commerce companies targeted as potential investments

Since 2001, Investcorp has invested more than $1.5bn in technology businesses worldwide. Courtesy Investcorp

Bahrain’s alternative investment manager Investcorp is combining its investment team focused on the Chinese technology sector with a similar unit operated by its Hong Kong-based partner, China Everbright.

The combined team and its investment committee will jointly manage the China Everbright New Economy Fund 1 and are exploring an opportunity to set up a successor private equity fund, the pair said in a statement.

“Through this partnership, we look forward to investing in tech companies that show significant potential to scale profitably and are managed by a strong management bench as part of our efforts to expand our offerings to our global client base,” said Hazem Ben-Gacem, co-chief executive of Investcorp.

The firms said the partnership would draw on Investcorp's three decades of experience in technology investment, with China Everbright's knowledge of the Greater China market.

They will target the entire spectrum of Chinese technology firms, from e-commerce and internet services, to smart retail and artificial intelligence to b2b software solutions, according to a statement from Investcorp on Wednesday.

“We believe our partnership with Everbright will help grow our investments in China and specifically in the technology sector. Our success in investing in technology companies in Europe positions us favorably to be a value-add investor to growth companies in that sector.”

Investcorp and China Everbright began their first collaboration in September 2018 through a fund specialising in China’s technology sector.

Since 2001, Investcorp has invested more than $1.5 billion (Dh5.5bn) in technology businesses in the US, Europe and Asia, across several verticals including data, security, FinTech & ePayments, internet and mobility.