AGIC Capital, a European-Asian private equity firm with a new $1 billion fund, is on the lookout for investments in small and mid-sized European industrial technology and healthcare companies, AGIC-Manager Wolfgang Seibold told Reuters.
The fund is targeting intelligent manufacturing, advanced materials as well as medical and environmental protection companies seeking to expand into China, AGIC said.
AGIC started building its portfolio and last year partnered with ChinaChem and Guoxin to acquire the global machinery supplier KraussMaffei Group, then the largest outbound investment from China into Germany.
Despite a surge in regulatory scrutiny of Chinese deals in Europe, such as the blocking of a takeover of Aixtron by U.S. authorities on security grounds, AGIC believes its investments will not attract as much regulatory scrutiny.
“Many of the discussions concern large companies, the leaders in their industry, where the political sensibility is far higher,” Seibold, partner and managing director of AGIC, told Reuters.
AGIC, which has raised funds from institutional investors, does not expect new tighter restrictions on foreign exchange transactions and outflows to hamper its ability to make deals, Seibold said.
“In these sectors we do not see delays through currency controls,” Seibold said, adding that AGIC’s portfolio would include between 10 and 12 companies.