The fund will focus on late-stage investing in middle-market companies in the Greater China region, including China, Taiwan, Hong Kong and South-East Asia. It will take significant stakes in each investment, have board representation and will be involved in strategic direction, financings and acquisition strategy.
London Asia and GEM will jointly manage the fund. GEM has committed capital of US$1.8bn in funds. Investors for the fund will come primarily through GEM’s network of contacts and existing investors, many of which are seeking an exposure to Chinese companies. GEM will be responsible for all technical, legal and compliance operations of the fund.
London Asia will use its offices and network in Greater China to identify opportunities, manage the investments and assist in the exit of portfolio companies, with particular focus for exits via the UK and Asian markets.
“Establishing the fund is in line with our strategy of generating income from a wider range of sources without significant investment of our own capital,” said Simon Littlewood, London Asia’s chief executive.
London Asia has identified that as a result of the fast-growing Chinese economy and underdeveloped financial services industry, there is strong demand for capital and financial advisory in China.