Bahrain-based Bluecove Capital, in partnership with CICC Capital of China, has announced the launch of a new investment fund with a capital of $500 million. The fund will focus on supporting the expansion of Chinese companies in the technology, green energy, and advanced manufacturing sectors within the Gulf region.
By the Numbers
The new fund is a significant vehicle for cross-border investment between the two regions:
- $500 Million: The total capital of the new joint fund.
- ~12 Investments: The approximate number of investments the fund’s portfolio will comprise.
- 10 Years: The lifespan of the fund, with a 4-5 year investment period per deal.
- ~15%: The average annual return for private equity funds in the region, a benchmark the fund aims to surpass.
- $2.6 Billion+: Bluecove Capital’s current assets under management (AUM).
A Bridge for Chinese Expansion into the Gulf
According to Hazem Ben-Gacem, Founder and CEO of Bluecove Capital, the fund will have a portfolio of about 12 investments. Two-thirds of these will be in Chinese companies, while the remaining third will be allocated to Gulf-based companies seeking to expand into China and Asia. The fund will have a 10-year lifespan, with an investment period of four to five years for each deal before exiting via an IPO, sale, or merger.
A Fast-Growing Regional Player
Bluecove Capital was established in the Abu Dhabi Global Market and is headquartered in Manama, with offices in London, Abu Dhabi, Dubai, and Beijing. The firm currently manages assets exceeding $2.6 billion and is expected to conclude its first year in November with over $5 billion in assets under management. Ben-Gacem noted that the fund’s profits will be realized after exiting investments, beginning from the third or fourth year.
Source: Jawlah
