CICC Capital, a unit of investment bank China International Capital Corp (CICC), has teamed up with insurance group China Pacific Insurance and state capital investors to launch a green carbon fund targetting to raise just over 3 billion yuan ($413.6 million).
This private equity (PE) fund will primarily invest in green energy, green transportation, green manufacturing, green city solutions, and other related industries, CICC Capital announced in a post on its WeChat official account on Monday.
The fund targets to “actively strengthen the inflows of patient capital into emerging cutting-edge, eco-friendly, and low-carbon sectors” and “seize opportunities amid the transformation of China’s energy structure,” said the firm.
China’s National Green Development Fund (NGDF), a state-level investment fund with 88.5 billion yuan ($12.2 billion) in registered capital, and a regional government guidance fund from Shenzhen City in southern China also participated in the establishment of the green carbon fund.
CICC Capital, the wholly-owned PE platform of CICC, has an investment scope spanning industries including deep technology, advanced manufacturing, new energy, new material, and healthcare. It makes equity investments in both Chinese yuan and US dollar, along with infrastructure and fund-of-funds (FOF) investments in China and globally.
The 3-billion-plus green carbon fund is the latest of its kind for CICC Capital, which has over the years partnered with local governments, domestic and foreign industrial groups, and financial institutions to launch green-themed funds. Its investments in new energy and new materials cover photovoltaic (PV) cells, hydrogen energy, lithium battery materials, and more.
Its Hong Kong- and Shanghai-listed parent posted 422.9 billion yuan ($58.3 billion) in AUM for the PE business as of June 30, 2024, according to CICC’s 2024 interim report.
