Goldman Sachs Purchases US And UK Companies Using Chinese State Funds Amid Rising Tensions

Goldman Sachs GS has leveraged a fund created in collaboration with the China Investment Corporation (CIC) to buy a series of companies based in the U.S. and U.K. at a time of escalating tensions between Beijing and the West, Financial Times reported.

Goldman Sachs completed seven deals using cash from a $2.5 billion private equity "partnership fund" it established in 2017 with the Chinese sovereign wealth fund. The acquired companies include a global supply chain tracking start-up, a cloud computing consultancy, a drug testing company and a manufacturer of systems utilized in AI, drones and electric vehicle batteries.

The bank revealed its investments in these companies but did not disclose that the deals were partly financed by the China fund.

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The Goldman-CIC fund has also helped finance the purchase of LRQA, the inspections and cyber unit of the U.K. maritime classifications group Lloyd's Register. LRQA's business includes cyber security group Nettitude, an approved service provider for the British government.

Despite the escalating tensions between Beijing and the West, Goldman has accelerated the fund's activities, making four investments in 2021 and one last year.

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