Goldman Sachs and China Investment Corporation Establish $5 Billion Fund to Invest in United States Companies
BEIJING/NEW YORK, November 9, 2017 -- The Goldman Sachs Group, Inc. (NYSE: GS) and China Investment Corporation (“CIC”) today announced that they have formed a strategic relationship to establish the China-US Industrial Cooperation Partnership, L.P. (“Cooperation Fund”). The Cooperation Fund will target $5 billion in commitments with a broad mandate to invest in American companies in the manufacturing, industrial, consumer and healthcare industries, among others, that have or can develop a material business connection to China. The Cooperation Fund is designed to enhance commercial linkages and promote market access for US firms in China and will seek to improve the balance of the US-China trade relationship.
“The China-United States relationship is one of the most important in the world and strengthening economic and trade cooperation is vital to the economies of both countries,” said Lloyd Blankfein, Chairman and CEO of Goldman Sachs. “The Cooperation Fund will increase Chinese investment in the United States, creating more opportunities for American workers and contributing to China’s economic transition and growth.”
“CIC has invested in the US for ten years and is committed to be both an investor and facilitator to develop a stronger China-US investment relationship,” said Tu Guangshao, Vice Chairman and President of CIC. “The partnership will help promote China’s supply-side structural reform and economic transition, and by investing in the US, it will act as a multiplier for business growth throughout the country.”
The Cooperation Fund, which will make select private equity investments in US companies, will create new opportunities for American companies to export innovative and competitive products to China with an aim of benefiting both the American and Chinese economies.
Goldman Sachs, through its Merchant Banking Division, will act as the sponsor and investment manager for the Cooperation Fund.
In addition to creating the Cooperation Fund, the two partners will host an annual summit of business leaders from the US and China, policy makers and investors to strengthen business and commercial ties between the two countries. The initial summit will be held in the US Mid-West in the first half of 2018.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
# # #