Tue, Mar 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Gottex to establish joint venture with Chinese asset manager VStone Asset Management

Wednesday, November 06, 2013
Opalesque Industry Update - Gottex Fund Management Holdings Limited (Gottex), an independent global alternative asset management group, announced it is to establish a joint venture with VStone Asset Management (VStone), a well-established private asset manager led by CEO Dr. Jiwu Chen to provide access to mainland China asset management and investors.

Gottex, which has one of the largest and most experienced hedge fund teams in Asia, will partner with Shanghai-based 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 proven 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.”

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie