Statement re: "J. Rothschild Creat Partners"
31 March 2011
RIT Capital Partners is pleased to announce its participation in the establishment of a new joint venture fund management company to operate in China. The announcement released today by the new venture is reproduced in full below:
NEW $750M FUND TO GIVE CHINESE PRIVATE SECTOR ACCESS TO INTERNATIONAL PRIVATE EQUITY FOR THE FIRST TIME
J. Rothschild Creat Partners, a newly established venture, the first of its kind and backed by RIT Capital Partners (chaired by Lord (Jacob) Rothschild), provides a ground-breaking and unique opportunity for China's private sector to invest in an overseas private equity fund.
The joint venture will create a vehicle that will enable Chinese private sector onshore money to invest overseas through a private equity fund for the first time.
RIT Capital Partners, PLC ("RIT"), the Creat Group ("Creat") and Quercus Ventures ("Quercus") have signed a shareholder's agreement to establish a joint venture fund management company (the "JV") which will combine RIT's international investment expertise and deal flow with Creat's extensive experience of investing in China and unique network of potential Chinese investors.
The first fund to be launched will be a private equity fund which will take significant unleveraged minority stakes in international companies (ex Japan), across a wide range of sectors where the West has particular expertise. Sectors on which the fund will initially focus include technology and clean tech, the green economy, healthcare, natural resources, and luxury goods.
The target fund size is US$750m, with RIT and Creat both committing seed capital. Investors will primarily come from the newly formed China International Chamber of Commerce for the Private Sector which has been tasked with enabling and organising overseas investment by Mainland Chinese private enterprises. In due course, the JV expects to launch other product lines which offer further opportunities to maximise the parties' respective strengths and unique ability to access Chinese onshore capital for overseas investment.
Commenting on the JV launch, Lord Rothschild said; "This unique venture will allow China's private sector to invest in Western companies, whilst providing opportunities for Western companies to enter China's rapidly growing and vibrant economy. Dr Zheng's vision has been vital in building Creat's network in China and they are the ideal partners as we seek to raise capital in China, facilitate investments overseas and assist Western companies as they expand into China."
Dr Zheng, Chairman of Creat and of the China International Chamber for Commerce for the Private Sector, added; "Increased integration, through overseas investment by the Chinese private sector and further participation in China's growth by Western companies, is an important step for the global economy. This fund is ideally placed to maximise the strengths of the international companies in which it will invest and to harness the power of the Chinese economy. We look forward to working with Lord Rothschild, RIT and Quercus on this exciting opportunity."
Lord Camoys, Chairman of Quercus Ventures, said "Quercus is proud to have brought together RIT and Creat, both of which have exceptional strengths and positions within their respective fields, to launch this first-of-a-kind joint venture. We know both sides well and have every confidence it will be a great success."
- ENDS-
Enquiries:
Brunswick Group LLP
Tim Payne / Tong Zhao (Asia) +852 3512 5000
Tom Burns / Fiona Micallef-Eynaud (Europe) +44 207 404 5959
Notes to Editors
The Creat Group
Founded in 1992, the Creat Group was one of the first firms to take advantage of Chinese economic reform. The Group has evolved into a diversified enterprise with interests mainly in the natural resources, financial services, industrial, real estate and private equity fund management space. Creat has been a pioneer in the establishment and expansion of a range of sectors in China, including privately owned banks, pharmaceuticals, electricity equipment manufacturing and juice concentrate production.
The two main shareholders of Creat are the Chairman, Dr. Zheng and the CEO, Mr. Ren Xiaojian, co-founder of the Group. Prior to co-founding Creat with Dr. Zheng, Mr. Ren spent over 10 years working in banks in China, Sweden and Hong Kong. As the former Vice-Chairman of the All-China Federation of Industry and Commerce, Dr Zheng has developed relationships with the key private enterprises and investment institutions in China and remains closely involved in policy making for China's private sector. As a result Creat has built a powerful network in China and is in a unique position to expedite and add value to investments and raise capital in the country.
Dr. Zheng was recently appointed the first chairman of the newly formed China International Chamber for Commerce for the Private Sector. This chamber has been tasked with enabling and organising overseas investment by Mainland Chinese private enterprises. www.creatgroup.com
RIT Capital Partners plc
RIT Capital Partners is an investment trust with net assets of some £1.9 billion which is listed on the London Stock Exchange. It is chaired by Lord Rothschild whose family interests retain a significant holding. www.ritcap.co.uk
Quercus
Quercus Ventures, a boutique investment advisory firm, provides strategic and investment advice in the world's fastest growing markets, with a particular expertise in China. Quercus Ventures is run by Beijing-based founder and CEO William Stonor and its London office is run by Maxim Parr. Lord Rothschild was a founder investor in Quercus Ventures when it was formed in September 2009 and owns 20% of the company. www.quercus-associates.com
This information is provided by RNS
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