Hong Kong-based CITIC Capital has entered into an agreement with state-backed investor Kazyna Capital Management JSC to form the CITIC-Kazyna Investment Fund I, according to a statement from CITIC Capital.
The fund will make investments in companies in the infrastructure sector as well as in projects in non-energy sectors. At least 50 percent of the fund is allocated to Kazakhstan and the remainder of the fund to China.
CITIC Capital and Kazyna Capital Management will also form another two direct investment funds, two years after the first fund. The two funds will be capitalised at $400 million each. The investors of these two funds will be institutional and private investors from China and Southeast Asia, according to news agency Kazakhstan Today.
In February, CITIC Capital raised $500 million for the first close of its second China-focused buyout fund. The firm’s first China-focused private equity fund closed on $425 million in May 2007. The fund targets buyout and privatisation opportunities in China, primarily those in consumer products and manufacturing sectors.
Kazyna Capital Management has invested in private equity funds including the $100 million Aureos Central Asia Fund and the Macquarie Renaissance Infrastructure Fund, which expects to close on up to $1.5 billion. The fund of funds also forms joint funds with other investors to invest in Kazakhstan.