Citic Capital gets Qatar SWF as investor
24 Aug 2012
Qatar Holding, the investment arm of the nation's sovereign-wealth fund, bought a 22% stake in Citic Capital Holdings, a Chinese private equity firm.
Qatar Holding bought the shares in Citic, part owned by China Investment Corp., for an undisclosed amount, according to a statement from the PE firm. Citic Capital, founded in 2002 and based in Hong Kong, oversees more than $4.4bn, including in funds focused on property. CEO Zhang Yichen said: "Not only will Qatar Holding provide us with an enlarged capital base to fund our business expansion and investments, its significant backing will strengthen our brand positioning meaningfully as the most preferred and committed partner to invest with, both in and outside China.
"The expanded shareholder base will further strengthen our business network and resources, and vitalise us to continue to pursue high standards of governance."
Citic Capital has raised money from investors including Singapore's state-backed Temasek Holdings in November. The company said it raised $225m in the first closing of its fourth real estate fund. The value of private-equity deals in China rose 19% to $28.5bn last year and has doubled since 2009, according to Asian Venture Capital Journal.
After the Qatar investment, Citic Pacific Ltd. and Citic International Financial Holdings will together hold a 43% stake in Citic Capital. CIC, China's sovereign wealth fund, will own 31.1%, according to the statement.
The Authority is also applying for a license to invest $5bn in China under the QFII programme, the China Securities Journal said 25 June, citing Energy and Industry Minister Mohammed Bin Saleh al-Sada.
Author: Iain Mills