Arch Financial Products, a European absolute return and alternative investment management firm, has announced plans to launch a private equity fund focused principally on Chinese energy as
Arch Financial Products, a European absolute return and alternative investment management firm, has announced plans to launch a private equity fund focused principally on Chinese energy assets at the beginning of December.
Arch’s China AME Energy Fund, a partnership between Arch, Financial Partners Bank and Future Trends International Group, aims to provide investors with superior risk-adjusted returns through investment in mid-market companies and projects in China, the wider Asia-Pacific region and the Middle East.
The China AME Energy Fund is seeking to raise up to USD500m from institutional investors including pension funds and banks as well as family offices and high net worth individuals in Europe, Middle East, Asia and the US, and will target a return of more than 20 per cent net of fees per annum.
It will invest in traditional energy assets including oil, natural gas and coal producers, as well as a broader range of segments including oilfield services, energy infrastructure, and alternative energy products such as biofuel producers and gasification projects.
The fund will target investments in established companies and projects that have attractive valuations and large supply and demand imbalances, as well as in new growth opportunities spawned by regulatory change and new technologies and the growing number of energy entrepreneurs.
The fund will also target companies operating in sectors undergoing consolidation, financial stress or asset rationalisation, and in sectors that are underexploited, highly fragmented and able to benefit from new management, a merger with other entities, or the injection of new projects.
‘With China’s economic engine still growing at 8 per cent per annum and increasing, the country’s annual crude and refined oil market at 10 per cent plus, and the gas market at just under 20 per cent, there is still an undeniable attraction in both opportunity and return profile within this market alone,’ says Arch senior partner Stephen Decani.
‘With the right access to deal flow, local expertise, a team of experienced professionals, and diversification of investments across energy sectors, we believe strong risk-adjusted returns can be captured for investors over a sustained period.
‘The partnership underpinning the China AME Energy Fund will provide investors with a blend of Chinese and regional coverage across energy, infrastructure and cross-border trade, extensive Far East and Middle East transactional expertise, and in-depth portfolio management, structuring, corporate finance and private equity experience.’
Arch was established in London in 2002 as a structured product provider and launched its investment management business in July last year. Since then the firm has established a team of more than 30 investment professionals and raised more than USD1.2bn in assets for its private finance, sustainable opportunities and private equity strategies.
Financial Partners Bank is an international financial advisory firm turned provider of offshore corporate banking services in emerging markets spanning the Asia-Pacific region, India and the Middle East, offering banking, asset management, insurance and wealth management services. Its corporate advisory department offers investment banking, capital markets, treasury and commodities, as well as venture capital and private equity investment in emerging Middle East and Asia-Pacific companies.
Future Trends International is a government enterprise and media networking organisation in China specialising in international cross-border trade finance and the energy industry in China, East Asia, the Middle East and the US. Its network of partners in more 250 cities, provinces and townships includes governors and deputies, mayors, deputy mayors and party secretaries, directors of foreign economic relations and trade, directors of state and local banks, private entrepreneurs and government corporations throughout China.
