The Capricorn Fusion China Fund’s vision stems from the belief that entrepreneurs from Europe and China have complementary backgrounds, products and services that can improve the quality of life for European and Chinese consumers.
The underlying rationale is very different in both directions, but the common denominator is that we have complementary skills set, demographics, historic backgrounds and growth vectors.
Pursuant to the EU Regulation (EU) 2019/2088 the fund is classified as a mainstream fund (article 6), although we do integrate sustainability factors and risks into our investment decision process in accordance with the ESG-policy of Capricorn Partners.
The opportunity for European companies in China
It’s no secret that China’s economy is growing and it will continue to do so at a faster pace than the US & Europe. Since 1978, China’s economy has shifted from being a developed country to the second largest economy in the world today. According to the OECD and the World Bank, China’s economy will be 1.5x larger than the US economy by 2040 and will account for 26.5% of world GDP. This GDP-growth hinges on this bigger set of developments:
The opportunity for Chinese companies in Europe
European companies and customers will benefit from China’s rise over the next twenty years. Given the European values that have resulted in decades of peace and prosperity, Europe is uniquely positioned to engage in a win-win relation and to invest in Chinese companies. Our understanding of diverse European cultures will help Chinese companies thrive in Europe as they will need an on-the-ground partner that can help them navigate the different dynamics of the region. This growth of China’s companies in Europe can be based on these trends: