The AIM-quoted investment group China Private Equity Investments (CPE) has agreed to develop a strategic partnership with Hong Kong-based asset management firm Gen2 Capital Partners.
The move is intended to boost CPE’s growth potential by marrying its own private equity experience with Gen2’s investment and risk management processes in the Greater China region.
As part of the agreement, CPE intends to appoint David Kiang, a Gen2 senior adviser, to the CPE board as a non-executive director.
CPE has already reviewed the current portfolio of assets held by Gen2, and identified a number of assets that would be attractive additions to its own portfolio of investments. Subject to further review and negotiation, it is likely that CPE will acquire certain assets from the Gen2 portfolio for a consideration that could comprise cash and/or ordinary shares in CPE. Gen2 may become a significant shareholder in CPE in due course.
CPE chief executive officer John Croft says: “This partnership represents an important step to what we hope will become a long-term strategic relationship to realise benefits that might be achieved from exposure to wider market opportunities and from the experience and institutional reach of Gen2.”
Gen2 managing partner Barry Lau (pictured) says: “We are delighted by the opportunity to work with CPE to develop a strong investment platform catering to the needs of European investors, and are looking forward to reaping the benefits brought to Gen2 by our resulting exposure to the London markets.
“Working together, we expect to benefit from the high standards of corporate governance and transparency which CPE’s London listing requires, and believe that jointly our combined team of professionals, robust investment and risk management processes should generate enhanced returns for investors on both sides.”
