Italy, China launch industrial cooperation fund

Rome: Italian lender UniCredit has announced the launch of the China-Italy Industrial Cooperation Fund (CIICF) in partnership with private equity firm Investindustrial and with the China Investment Corporation (CIC).

The CIICF has an initial capital of 600 million euros (about 700 million U.S. dollars), fully underwritten by Investindustrial, the CIC and UniCredit, and it will “invest primarily in Italian mid-market companies,” the Italian lender said in a statement.

“This innovative partnership will offer significant investment, predominantly to Italian companies, with the aim of establishing and accelerating their business development in China,” the statement said.

“As a consequence, Chinese consumers will benefit from improved access to quality European goods and services, primarily in the consumer, industrial manufacturing and healthcare sectors,” it added.

Investindustrial, a leading European investment firm mainly focusing on Southern Europe, is the sole investment manager of the new fund, UniCredit said.

“Thanks to the partnership with CIC and UniCredit, Investindustrial will double the size of its China-focused team, based in China and Europe,” said Andrea C. Bonomi, Managing Principal of Investindustrial.

“This innovative cross-border partnership will benefit Italian companies focused on the Chinese market… while also stimulating international commerce and relations,” said UniCredit Corporate and Investment Banking CEO Richard Burton.

“Bringing the recognized expertise, experience and networks of the three parties into synergy, this unique partnership is expected to create value by enabling investee companies to expedite business growth internationally, especially in China,” CIC said in a statement.

CIC said that CIICF will seek to invest in Italian and Southern European companies aspiring to open new pathways for growth in China, mainly in attractive sectors including advanced manufacturing, business services, consumer goods and services, healthcare, etc.

Established in 2007, CIC is a vehicle to diversify China’s foreign exchange holdings and seek maximum returns for its shareholder within acceptable risk tolerance.