Global Opportunistic Fund II, a pre-IPO and IPO fund managed by Global Capital Management, has concluded an exit from its investment in Evergrande Real Estate Group.
Primarily driven by the divestment of Evergrande as well as income from other investments, GOF II declared a distribution of USD61.2m representing 20 per cent of the initial committed capital as a return of capital to the investors.
Evergrande is a Hong Kong-based investment holding company ranking among the ten largest real estate developers in China. It engages in real estate and property development, investment, management, construction, land leveling and other property development related services in China.
Rajiv Nakani, managing partner at GCM, says: “Our strong belief in the investment potential of the Chinese market in general and in the Chinese real estate sector in particular has been successfully delivered by the fund’s investment in Evergrande. Until the IPO in November 2009, GCM had a seat on the board of Evergrande through which it participated in the decision-making process and made relevant contributions at each stage.”
GOF II realised an IRR of 35 per cent and an absolute return of 100 per cent in the sale of Evergrande investment. The fund invested USD30m in Evergrande in June 2008 and exited completely in November 2010.
Including Evergrande, GOF II has fully exited five companies from its portfolio with an aggregate IRR of 57 per cent, thus returning USD133m to its investors.
The fund’s current portfolio has nine companies across the Middle East and South Asia region spanning different sectors including infrastructure, healthcare, logistics, retail, food and restaurants, auto ancillary and textiles.
