$5-B China Investment Fund Coming to Buy US Manufacturers
Goldman Sachs (NYSE:GS) partners with sovereign fund China Investment Corp. (CIC) to jointly launch an up to $5-B fund to invest in US manufacturers.
CIC is 1 of the world’s largest sovereign wealth funds
The details of the fund will be announced Thursday as part of US President Donald Trump’s visit to China.
The Goldman-CIC fund will aim to bolster its returns by helping the companies it invests in to expand their market in China, they said.
Goldman Sachs declined to comment.
CIC did not immediately respond to a LTN request for comment.
The exact amount contributed to the new fund by each side is still being finalized.
Goldman’s CEO Lloyd Blankfein will visit China as part of a business delegation, which is being led by US Commerce Secretary Wilbur Ross, this week at the same time as President Trump.
China is an important region for Goldman, which ranked as the top M&A dealmaker in Asia-Pacific excluding Japan in the 1st 9 months of the year, according to Thomson Reuters.
CIC has made a series of large investments this year including the $13.7-B acquisition of warehouse firm Logicor, Europe’s biggest ever private equity real estate deal.