New Delhi, Aug. 26 -- BlueFive Capital, an Abu Dhabi-based asset management firm that manages assets worth over $2.6 billion, has launched a private equity fund in partnership with a Chinese investment firm.
The asset manager, which launched last year, has partnered with CICC Capital, the private equity investment platform of China International Capital Corporation, for a PE fund to back Chinese entities with Gulf expansion plans.
Acting as a gateway between China and the Gulf market, the investment vehicle would back Chinese companies in the new economy sectors and facilitate their expansion in the Gulf Cooperation Council markets.
The fund will focus on investments across industries such as technology, digital transformation, green energy, advanced manufacturing, and consumer-driven sectors. It will leverage the GCC as a gateway for Chinese businesses to access local markets and also as a launch pad for their commercial and manufacturing initiatives to other parts of the world, within the regulatory framework applicable to CICC Capital.
The collaboration capitalises on BlueFive's expertise in cross-border alternative investments and its Middle East-Asia network, combined with CICC Capital's unparalleled access to China's private equity ecosystem and institutional capabilities, the firm said on Tuesday. The partners will work on a non-exclusive, good-faith basis to negotiate definitive agreements, including fund structuring, capital commitments, and investment strategy, it said.
"CICC Capital is committed to fostering cross-border partnerships that drive sustainable growth. Collaborating with BlueFive Capital allows us to tap a range of geographies while extending our reach into high-potential new economy sectors," said Shan Junbao, Chairman of the Board of Directors of CICC Capital.
CICC is a Chinese partially state-owned multinational investment management and financial services company, set up as a strategic partnership among Chinese and international financial institutions and corporations in 1995. Its PE arm, CICC Capital, manages assets worth approximately $63 billion as of December 31, 2024, across a diversified portfolio covering industries such as advanced technology, high-end manufacturing, healthcare, and consumer.
"By aligning BlueFive Capital's GCC capabilities with CICC Capital's track record in scaling innovation, we aim to deliver unparalleled value to investors while accelerating the growth of tomorrow's industry leaders," said Hazem Ben-Gacem, founder and chief executive, BlueFive Capital.
BlueFive, which counts Bahrain's sovereign wealth fund Mumtalakat Holding Company among its more than 25 shareholders, had recently acquired a Dubai-based real estate investment platform, Neo Capital, in its debut strategic transaction.
Founded by former Investcorp executive Ben-Gacem, Bluefive has raised $2 billion for the GCC PE fund-BlueFive Reef Private Equity Fund I, which is targeting large-cap private equity investments in the region. In its inaugural deal, it fully acquired Wusoom Holding, which has a diversified group of companies across the fast-growing real estate, technology, hospitality, aviation, and industrial sectors in the Gulf Cooperation Council (GCC).
Ben-Gacem had stepped down after 30 years at Investcorp in September. He had joined Investcorp in 1994 and led private equity investments across North America, Europe, the Middle East, Southeast Asia, and China.
The firm, with offices in Manama, London, Beijing, and Abu Dhabi, aims to deploy capital in the financial services industry through strategies including private equity and real assets. Its focus areas include digitization and technology-led opportunities in the financial services space, focusing on key investment themes, mainly private equity and real assets.
BlueFive has a 25-person investment team spanning London, Bahrain, Abu Dhabi, Dubai, and Beijing. It operates three parallel entities- BlueFive Financial, BlueFive Asset Management, and BlueFive Advisory.
Published by HT Digital Content Services with permission from VC Circle.