China Everbright Limited & China Merchants Bank Jointly Establish a Multi-strategy Equity Investment Fund of Funds With a Total Size of RMB5 Billion
Business Related 10 Jul 2017
Download PDF
China Everbright Limited (“CEL”, stock code: 165.HK) and its associate company, Everbright Prestige Capital Asset Management Company Limited (“Everbright Prestige”) have extended their cooperation with China Merchants Bank (“CMB”) in the joint establishment of Zhuhai Hengqin CEL-CMB Investment Centre (Limited Partnership), a multi-strategy equity investment “fund of funds” (FoF) with a total size of RMB5 billion, for which CMB and CEL have subscribed RMB4 billion and RMB1 billion respectively. The FoF will be managed by the experienced and professional team of CEL and Everbright Prestige.
The FoF lays emphasis on three investment areas: reform of state-owned enterprises; industrial integration of listed companies; and TMT new economy. It focuses on equity investment in primary markets and between the primary and secondary markets with intended participation in venture capital (VC), private equity (PE), Pre-IPO, merger and acquisition (MA) and certain private placement investments.
FoF management is one of the substantial parts of CEL’s fund management platform. The platform provides a one-stop solution offering liquidity and potential returns for mega-size institutions, and helps diversify institutional investors’ portfolios and alleviate the impact of market volatilities. The FoF managed by CEL has reached a current size of RMB10 billion with an impressive track record of performance.
With total assets under its management exceeding RMB2,200 billion, partnering organisation CMB has a long history of strong performance. It offers rich and innovative investment products ranging from those denominated in local currency to those in foreign currencies, from open- to closed-end, and from those employing one single allocation strategy to those coupled with diversified allocation strategies. CMB also engages in various types of investments in domestic key currency markets, bond markets, capital markets and commodity markets as well as overseas investment.
The joint establishment of the FoF by CEL and CMB marks another innovative breakthrough upon the foundation of in-depth cooperation between the two parties across various industrial funds. The FoF combines CEL’s diversified industrial platforms for investment, financing, management and withdrawal as well as strengths in strategic investment as a visionary central enterprise, with CMB’s solid financial strength and extensive experience in asset management. The FoF is therefore able to generate stable returns with controllable risks through multi-strategy and comprehensive asset allocation.
To date, the fund has successfully contributed RMB500 million to its first direct investment equity project and invested in more than 10 reserve sub-funds and projects.
The FoF lays emphasis on three investment areas: reform of state-owned enterprises; industrial integration of listed companies; and TMT new economy. It focuses on equity investment in primary markets and between the primary and secondary markets with intended participation in venture capital (VC), private equity (PE), Pre-IPO, merger and acquisition (MA) and certain private placement investments.
FoF management is one of the substantial parts of CEL’s fund management platform. The platform provides a one-stop solution offering liquidity and potential returns for mega-size institutions, and helps diversify institutional investors’ portfolios and alleviate the impact of market volatilities. The FoF managed by CEL has reached a current size of RMB10 billion with an impressive track record of performance.
With total assets under its management exceeding RMB2,200 billion, partnering organisation CMB has a long history of strong performance. It offers rich and innovative investment products ranging from those denominated in local currency to those in foreign currencies, from open- to closed-end, and from those employing one single allocation strategy to those coupled with diversified allocation strategies. CMB also engages in various types of investments in domestic key currency markets, bond markets, capital markets and commodity markets as well as overseas investment.
The joint establishment of the FoF by CEL and CMB marks another innovative breakthrough upon the foundation of in-depth cooperation between the two parties across various industrial funds. The FoF combines CEL’s diversified industrial platforms for investment, financing, management and withdrawal as well as strengths in strategic investment as a visionary central enterprise, with CMB’s solid financial strength and extensive experience in asset management. The FoF is therefore able to generate stable returns with controllable risks through multi-strategy and comprehensive asset allocation.
To date, the fund has successfully contributed RMB500 million to its first direct investment equity project and invested in more than 10 reserve sub-funds and projects.
