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China’s CIC May Invest Up To $1.2B In Apax

By Reuters

  • 03 Dec 2009

China Investment Corp, the country's sovereign wealth fund, may invest up to 800 million euros ($1.2 billion) in British private equity firm Apax Partners [APAX.UL], the Financial Times reported on Thursday.

The deal will be unusually structured, with Apax giving its investors the option of transferring yet-to-be-invested funds to CIC, the paper reported. CIC will go ahead with the deal so long as it receives at least 350 million euros of these unfunded commitments.

Such a swap could entice investors who lack cash and are trying to reduce their exposure to private equity funds.

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The FT did not indicate its sources. Calls to CIC went unanswered.

The report added that CIC may also buy a 2.3 percent stake in Apax Partners LLP, the private equity group's management company.

The $300 billion Chinese fund has been on an investment spree this year, concentrating mainly on the energy and commodities sectors after high-profile financial sector investments in Blackstone and Morgan Stanley left it with deep paper losses when the global financial crisis struck.

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