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Goldman Sachs inks $5 Bn Deal with CIC for U.S.-China Industrial Fund

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Published on : Nov 09, 2017

The manufacturing industry in the U.S. is expectedly headed for buoyant times ahead. In a series of concerted efforts by the U.S. Government to brighten the industrial outlook in general and rejuvenate the manufacturing sector in particular, international investment collaborations seem to play a key role. In 2017, Goldman Sachs, a multinational financial company based in the U.S., is partnering with China Investment Corp (CIC), one of the richest sovereign wealth funds, targeting US$5 Billion in private equity fund scheme, according to a release by the U.S. Department of State on November 9, 2017. The information of the deal was first reported by Wall Street Journal. The money will be invested primarily into a range of businesses such as consumer, manufacturing, industrial, and healthcare.

While the contribution of each is still being worked out given the fact that the deal still isn’t public, the Goldman-CIC fund aimed at manufacturing is likely to be unveiled by the end of this week (ending on November 12). The Presidents of both the nations are scheduled to begin a series of meetings this week, since China is considered a key region for investment deals in the Asia Pacific excluding Japan (APEJ) this year.

Goldman-CIC Fund to Provide Impetus to Businesses in China as well as U.S.        

With CIC, boasting of assets amounting to a whopping US$813 billion, the investment deal will significantly benefit the businesses in both the nations, believe market analysts. Through the deal China is looking for a convenient regulatory route to secure major investments in various industries in the U.S., with a key focus on the high-technology manufacturing and transportation. Of note, several private equity investment deals among Chinese players fell through in the U.S., citing national security concerns. On the other hand, the combined fund will help numerous companies to expand their presence in China.

CIC this year has already made a series multi-billion dollar investments in developed regions.