Europe-Asia focused private equity firm A Capital has launched a new fund called A Capital Technology Fund, hoping to raise up to €1 billion ($1.38 billion), according to a company announcement.
Beijing-based Chinese private equity firm, ChinaEquity Group, is to invest in the new fund. The amount of its investment was not disclosed.
The new tech fund aims to invest in innovative European companies in the environmental, energy, digital, healthcare, mobility, logistics, as well as high-end manufacturing sectors.
The new fund will help accelerate its portfolio companies’ growth in emerging markets, particularly in China.
A Capital and ChinaEquity Group also plan to establish a RMB co-investment vehicle in China. It is seeking to raise at least RMB1 billion from Chinese institutional and corporate investors.
The fundraising plan was announced at a signing ceremony during Chinese President Xi Jinping’s visit to Belgium on Monday.
ChinaEquity Group manages RMB3 billion across four private equity funds and three venture funds.
(Update on April 3, 2014: A Capital’s founder and managing partner André Loesekrug-Pietri says that ChinaEquity Group will invest up to €50 million into the new fund)