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Qatar increases Citic Capital stake to 22% amid continuing diversification

22 Aug 2012

Qatar’s $100bn sovereign wealth fund has upped its stake in Chinese state-backed investment company CITIC Capital to more than 22 per cent as it continues its diversification drive.

The deal through the fund’s Qatar Holding vehicle leaves CITIC Pacific and CITIC International Financial Holdings with a joint 42.78 per cent stake, while China’s $482bn sovereign fund CIC holds 31.11 per cent.

Management and the trustee of CITIC Capital’s share scheme own the remaining 3.89 per cent.

CITIC Capital has more than $4.4bn of capital under management and has interests in private equity, venture capital, real estate, asset management and structured investment.

The firm’s CEO, Yichen Zhang, said, “Not only will Qatar Holding provide us with an enlarged capital base to fund our business expansion and investments, its significant backing will strengthen our brand positioning meaningfully as the most preferred and committed partner to invest with, both in and outside China.

“I am confident that the expanded shareholder base will further strengthen our business network and resources, and vitalize us to continue to pursue high standards of governance.

“We look forward to working closely with Qatar Holding, in addition to our existing shareholders, China Investment Corporation and CITIC Group, who will continue their commitment and strong support to us.”

Qatar has been actively pursuing a policy of diversifying investments made using its vast natural gas wealth, recently taking stakes in sectors including luxury hotels, mining and top-flight football.

In April the fund signed a £153m co-investment deal with Barclays Natural Resources Investments (BNRI) in a move which strengthens the existing relationship between the partners.

Qatar already owned a 6.8 per cent stake in the British multinational bank, making it one of the lender’s top three shareholders.

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