Hong Kong-based alternative asset management firm, Orion Partners, has entered into partnership with Bahrain Middle East Bank (BMB), to act as its sponsor for its new China-focused private equity fund to be formed in collaboration with Orion.

The fund aims to target investors from the GCC countries, a statement from the bank said.

The new $50 million fund will be operated in parallel with the $250 million Orion C Growth Fund (C Fund) focusing on three core elements: China, Consumers and “C-Partners”- a strategy of bringing together renowned industry specialists with strong track records in building large and successful consumer businesses in China. 

Together with Orion Partners’ pipeline of C-Partners, the fund will invest in growth businesses in the consumer sector with a goal of building true market leaders. Investments will focus on businesses tied to China’s tremendous growth in sectors such as luxury products, marketing and communications services and branded consumer goods.

Akbar Habib, chief executive officer of BMB, said: “Orion Partners’ principals have successfully launched 16 funds for investments in North Asia since 2000. They offer unparalleled access to the fast-growing Chinese market. This strategic partnership gives us the opportunity to provide our clients a gateway to world’s second-largest and fastest growing economy.”

“Interestingly, even though China will be the world’s largest economy by the end of this decade, less than 12 percent of GCC foreign assets are in Asia, and even lesser in China. Together with Orion, we will help our clients diversify and provide unique access to the consumer sector – the fastest growing segment in China’s booming economy. From BMB’s perspective, the tie-up broadens our coverage and extends our product slate to include all major global economies,” he added.

The total value of foreign assets held by investors from the GCC is projected to rise to $1.9 trillion by the end of 2011 – up sharply from the high of $1.5 trillion in 2008, according to the Institute of International Finance.

TK Chiang, managing partner of Orion, said: “Historically, most foreign investments in China have been targeted at heavy industry and light manufacturing. More recently, domestic consumption, at over $2 trillion annually and growing at over 18 percent per year, has become a critical component of China’s emergence as an economic superpower. This is the space we plan to occupy with our new relationship with BMB.” – TradeArabia News Service