Ex-Deutsche Banker Cai Raises $650 Million for China-German Fund

  • Henry Cai says AGIC fund to raise $1 billion by end of 2015
  • AGIC fund to invest in companies in German-speaking countries

Henry Cai, former Asia-Pacific chairman of corporate finance at Deutsche Bank AG, has raised $650 million for a new $1 billion private-equity fund that will invest in industrial companies in German-speaking countries seeking to grow their China operations.

The AGIC Group fund should reach the target size of $1 billion by the end of the year, after a second round of capital raising among investors in the Middle East and Europe, Cai, the fund’s chairman, said in a telephone interview on Thursday.

The sovereign wealth fund China Investment Corp. and insurance companies are among the investors that have already committed funds, said Cai, 60.

The fund will invest in companies in German-speaking areas which are seeking to expand into China and create partnerships with Chinese firms, Cai said. As a result, Chinese firms will get better access to the foreign firms’ technology, he added.

Chinese Premier Li Keqiang visited Germany in October last year, his second trip to the country since taking office in 2013. The latest trip led to agreements between Chinese companies and German firms including Volkswagen AG and Deutsche Telekom AG.

Cai, who left Deutsche Bank in February, played a key role in the first wave of overseas initial public offerings by Chinese companies, starting in the late 1990s. As a member of the China State Council’s IPO team between 1992 and 1995, Cai was also responsible for picking the first batch of China’s state-run firms to list in Hong Kong.

The progress in AGIC’s fund raising was first reported by the Wall Street Journal.

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