CICC Capital Establishes European Buyout Fund with Silk Road Fund and Fondations Capital

“FC Value Trail Fund” (“the Fund”), a European buyout fund jointly established by CICC Capital, Silk Road Fund and the French Private Equity Fondations Capital, completed its first closing on June 29th, 2018, with a final closing targeted at €400-500mn. The Fund aims to leverage the extensive network of fund sponsors in both Europe and China to make effective cross-border investments and achieve synergy through combining highly competitive European companies with China’s vast market and manufacturing capacity.

The Fund will conduct investments in companies located primarily in France and Germany, as well as other developed European countries such as Italy and Switzerland, with various target industries including advanced manufacturing, healthcare, technology and media, consumer services, energy conservation, environmental protection, and agricultural technology. Leveraging its sponsors’ extensive network in China, the Fund aims to help portfolio companies achieve significant business development and market expansion in China by bringing in local resources and Chinese strategic partners.

Investors of FC Value Trail are comprised of renowned companies and families from China and Europe, with prominent names including Silk Road Fund, CICC, Rothschild, Generali, BNP Paribas, Oddo, ERAFP, Unibel, and Michelin Family. As a first-time fund, the Fund is highly recognized by sophisticated institutional investors because of its strong platform and unique strategy.

The establishment of the Fund is highly supported by Chinese and French governments. Mr. Ma Kai, former Chinese Vice Premier, and Mr. Michel Sapin, former French Minister for the Economy and Finance attended the first signing ceremony of the Fund in Paris and witnessed the signing by Mr. Wang Yanzhi, President of Silk Road Fund, Mr. Bi Mingjian, CEO of CICC, and Mr. Xavier Marin, founder of Fondations Capital. French President Macron also wrote to relevant parties to express his strong support.

The core management team of the Fund consists of team members from three sponsors. The European team, led by Mr. Xavier Marin, founder of Fondations Capital, and Hervé Machenaud, former President of Electricite De France in China, has rich experience in M&A, leveraged buyout and international business development. Mr. Ding Wei, CEO of CICC Capital, will be on the Board of Directors. Mr. Zhao Xiaozheng, Managing Director of CICC, will be a member of the Investment Committee. The CICC team will work closely with the European team and play a crucial role in fund management and the investment process. Furthermore, the Fund has a senior advisory team consisting of distinguished European political and business leaders, including former French Prime Minister Jean-Pierre Raffarin and several French and German business leaders.

The Fund is of great significance for the internationalization strategy of CICC and CICC Capital. With the unreserved support from fund investors, CICC Capital is committed to not only creating outstanding financial returns, but promoting extensive cooperation and exchange between China and the World as well.