Fri, Oct 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Two Asia Pacific joint ventures for Gottex

Thursday, November 07, 2013

Gottex has been busy in the Asia Pacific arena again this month with two lots of joint ventures. Latest news is of a jv with China based asset manager, VStone Asset Management (VStone), a private asset manager led by CEO Dr. Jiwu Chen to provide access to mainland China asset management and investors.

Max Gottschalk

Gottex will partner with Shanghaibased VStone, one of the leading private asset managers in the People's Republic of China, led by Dr. Jiwu Chen, the former CIO of Fullgoal Fund Management and China Life. VStone's total staff of 35 includes a team of mainland China equity and private equity managers and investment professionals.

The JV will provide institutional and qualified private investors access to the China onshore market (including A-Shares) and China mutual fund sector. Conversely, the partnership will operate as Gottex's distribution channel in mainland China. Gottex will acquire a minority stake in the newly formed company, while VStone will transfer its existing products and business activity to the new entity. The transaction will include a cash consideration from both parties and Gottex will issue covered warrants over 1.725 mln Gottex shares or roughly 5% of its issued share capital to the principals of VStone at an exercise price of CHF 3.50. The deal is subject to Chinese administrative approvals which are expected to be granted within the next two months.

Commenting, Max Gottschalk, CEO of Gottex Asia, said: "We are extremely pleased to have concluded our negotiations for the establishment of a joint venture asset management company with VStone and Dr. Chen, a seasoned and highly respected long-term investor in the China onshore equity and financial markets. According to research from McKinsey 75% of China's urban population will reach middle class status within less than 10 years from now which shows the enormous potential in China. The asset management industry being still in its infancy, recent government reforms and continued support for the development of a fully developed capital markets shall further boost the growth opportunity for the asset management industry in the region. Being able to offer our investors access to China's onshore equity and bond markets through a highly professional team and institutional process provides us with confidence that we believe our new venture will become a great success."

Dr. Jiwu Chen, CEO of VStone Asset Management, stated: "With China's economic development and accelerated pace of reform, along with the internationalisation of the RMB and the establishment of Shanghai free trade zone, China financial markets are constantly integrating into the global financial markets. VStone and Gottex, after a long period of mutual understanding, became partners. The partnership is not only on a capital level, but also based on a mutual recognition of ideas and goals. By leveraging the strengths and experience of both sides, the VStone Gottex partnership will have great prospects and create more value for our clients, shareholders and investors in the future."

In October, Reuters reported that Gottex had joined up with ex-Blackstone and Goldman executives to seed Asian hedge funds, via a partnership with Headland Strategic Ltd founded by Michael Garrow, an ex-Blackstone executive, and Johannes Kaps, who earlier worked at Goldman. The report said that the new initiative will offer hedge fund managers as much as $75 million each from next year. It aims to help them individually build a start-up capital of at least $100 million.

 
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.
Asia Pacific Intelligence
Asia Pacific Intelligence
Asia Pacific Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some