Bain Capital, a global private investment firm, has formed a joint venture with China’s DNE Group, a leading industrial real estate developer and operator.
The joint venture will focus on investing in manufacturing park assets in China, with an initial equity commitment of $250 million.
This move marks an exciting opportunity for both Bain Capital and DNE Group to tap into China’s growing manufacturing industry.
As the world’s second-largest economy, China has seen a surge in demand for modern manufacturing facilities in recent years. With this joint venture, both companies aim to capitalize on this trend and develop world-class manufacturing parks in China’s core economic hubs.
Bain Capital’s investment in DNE Group’s unit D&J China in 2019 has helped accelerate the industrial park developer’s strategic growth and build a substantial portfolio.
The new joint venture will further strengthen the partnership between the two companies and enable them to leverage their respective expertise in private investment and industrial real estate development.
Establishment of the Joint Venture
Bain Capital and DNE Group announced the establishment of a joint venture with a $250 million equity commitment to build new economy infrastructure in China. The JV platform will focus on developing smart manufacturing facilities, logistics and cold chains, life sciences parks, and advanced manufacturing in the Yangtze River Delta.
Equity Commitment
The joint venture will have a total equity commitment of $250 million, with both Bain Capital and DNE Group contributing to the funding. The investment platform will have assets under management of $500 million.
Targeted Sectors
The joint venture will focus on developing new economy infrastructure, including smart manufacturing facilities, logistics and cold chains, life sciences parks, and advanced manufacturing. The aim is to provide a comprehensive range of services to support the growth of the new economy sector in China.
Location and Assets
The joint venture will be headquartered in Beijing and will operate across China. The initial batch of assets will include manufacturing park assets in the Yangtze River Delta, which will be upgraded and merged to create new economy infrastructure.
Investment Opportunities and Goals
The joint venture aims to identify investment opportunities in the new economy sector, with a focus on developing new economy infrastructure. The goal is to support the post-pandemic economic recovery in China and to help drive economic growth in the country.
Partners and Funding
The joint venture is backed by Bain Capital, a leading global investment firm, and DNE Group, a Shanghai-based company that specializes in the development and operation of industrial parks. Other partners include Warburg Pincus, Sequoia Capital, and Partners Group.
Expected Impact
The joint venture is expected to have a significant impact on the development of new economy infrastructure in China. The investment platform will provide the necessary funding and expertise to support the growth of the new economy sector, and to help drive economic growth in the country.
Portfolio and Future Prospects
The joint venture will focus on developing a portfolio of new economy infrastructure assets, including manufacturing parks, industrial parks, and urban redevelopment sites. The investment platform will be managed by a team of experienced project managers, who will oversee the development of the underlying infrastructure. The joint venture is expected to have a positive impact on the post-pandemic economic recovery in China, and to help drive strategic growth in the new economy sector.
