European-Asian PE firm AGIC Capital raises second fund at $1.2b

European-Asian private equity firm AGIC Capital has held a final closing of its second fund, AGIC Fund II, at $1.2 billion, according to an announcement.

The second fund will continue to focus on advanced industrial and medical technology investments. It will invest in the majority and significant minority positions in mid-market companies with enterprise values in the range of $50–500 million.

AGIC Fund II started raising capital in 2020, and was largely subscribed to by existing investors, AGIC Capital said.

While mostly backing European businesses, the firm looks for companies with international expansion as a key growth driver, particularly in Asia.

Henry Cai, the founding partner of AGIC Capital, is based in Hong Kong. Prior to establishing the firm, he served as the executive chairman of investment banking Asia Pacific at Deutsche Bank and the chairman of UBS AG’s Asia investment banking unit.

AGIC Capital has offices in Munich, London, Hong Kong, Shanghai and Beijing.

“The strong performance of AGIC Fund I proves that our strategy of supporting portfolio companies in their international expansion is highly effective and resilient even during times of unusual stress,” said Cai.

Founded in 2015, AGIC Capital closed its debut $1-billion fund in 2017.

The firm has made seven buyout and growth-stage investments, mostly in Europe.

In terms of exits, it claims to have “good returns” with three divestments to date.

In August 2021, AGIC Capital sold media laser firm Fotona Holdings Netherlands, which has a direct sales force in the US and China.

In 2016, AGIC’s investment in German machinery supplier KraussMaffei Group was done in partnership with ChinaChem and Guoxin, according to an earlier announcement.

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