28 Jun 2011
RAB Capital, the hedge fund group that is proposing to delist from AIM, is to sell its Energy and Octane funds to Sunwah International Asset Management, an Asian asset manager listed on the Toronto Stock Exchange. Sunwah also announced that it is in talks to buy an 80% stake in PCE Investors, a hedge fund incubator with about $550 million in assets invested in about 10 funds.
Sunwah said that it has entered into a non-binding letter of intent with an Asian based alternative asset manager who intends to invest $50 million into the Energy and Octane funds. It will also invest a further amount of about $200 million to back stop redemptions and secure the capital of the funds.
The RAB Energy Fund was awarded the Eurohedge Award as best global long short equity fund of 2010 when it returned 46% and was managed by Gavin Wilson and Mark Redway. Wilson has left RAB, but Redway is staying on to run both Energy and Octane. Last week, RAB said it was in talks to sell the funds for a nominal considereation.
PCE is an alternative asset management business specializing in fundamental and systematic portfolio management processes within a rigorous and embedded risk management environment. Fund managers with PCE are supported by an institutional infrastructure with an integrated risk management overlay. PCE has a presence in London, Singapore and New York, providing 24-hour risk management and monitoring coverage.
Sunwah is a strategically positioned asset-based financial services provider, linking the global investment community with China’s high growth economy. It comprises three integrated divisions: Capital Markets Group, consisting of brokerage and financial services, including investment banking; Strategic Investment Group, a merchant bank focused on mining and natural resources; and an Asset Management Group specializing in private equity funds. Sunwah operates from five offices located in Hong Kong, Beijing, Shanghai, Shenzhen and Toronto.
Following a recent restructuring, Sunwah is positioned as a middle tier provider of financial services in these sectors and an opportunistic investor in these and related sectors. Its strategy is to use investment activities to generate advisory services revenue while creating value for its shareholders through asset accumulation. Sunwah continues to operate as a China focused multi-discipline asset based financial services firm, with a concentration on natural resources, infrastructure and real estate.
Sunwah said that it has entered into a non-binding letter of intent with an Asian based alternative asset manager who intends to invest $50 million into the Energy and Octane funds. It will also invest a further amount of about $200 million to back stop redemptions and secure the capital of the funds.
“These transactions provide confirmation of Sunwah’s business plan to become a leading global funds platform,” said Doug Betts, president and CEO of Sunwah International Ltd. “It is very encouraging to have this level of investor support. Securing additional investments from sophisticated investors, when combined with the robust risk management systems of PCE and its experienced operational management team, puts us well ahead of our original business plan. The combined effect of the transactions will result in SIAM controlling a fully regulated global operating asset management platform with a target to achieve $1 billion of assets under management by year end.”Earlier this year, SIAM unveiled plans to become a global fund business bringing an Asian perspective to emerging and growth markets. The SIAM business will operate on the “family of funds” model. SIAM will recruit “best in class” fund managers, grow assets and identify investment opportunities.
The RAB Energy Fund was awarded the Eurohedge Award as best global long short equity fund of 2010 when it returned 46% and was managed by Gavin Wilson and Mark Redway. Wilson has left RAB, but Redway is staying on to run both Energy and Octane. Last week, RAB said it was in talks to sell the funds for a nominal considereation.
PCE is an alternative asset management business specializing in fundamental and systematic portfolio management processes within a rigorous and embedded risk management environment. Fund managers with PCE are supported by an institutional infrastructure with an integrated risk management overlay. PCE has a presence in London, Singapore and New York, providing 24-hour risk management and monitoring coverage.
“In this day and age, governance, risk management and vigorous systems and controls are absolutely essential to safeguard the interests of investors,” said Bill Majcher, CEO of SIAM. “I have dedicated considerable years of my professional life to enhance and protect the integrity of capital markets. I am very confident that PCE not only meets these expectations but in fact exceeds them.”The transaction will be structured as a novation and consists of a combination of cash and a share in future management and performance fees in favor of RAB Capital. The novation is expected to close the later of regulatory approval or August 31, 2011.
“We are very pleased by the opportunity to launch the business with two of the leading funds in the energy sector,” added Majcher. “Our initial discussions with many existing investors confirm they are supportive … (and) are pleased to see Sunwah involved.”
Sunwah is a strategically positioned asset-based financial services provider, linking the global investment community with China’s high growth economy. It comprises three integrated divisions: Capital Markets Group, consisting of brokerage and financial services, including investment banking; Strategic Investment Group, a merchant bank focused on mining and natural resources; and an Asset Management Group specializing in private equity funds. Sunwah operates from five offices located in Hong Kong, Beijing, Shanghai, Shenzhen and Toronto.
Following a recent restructuring, Sunwah is positioned as a middle tier provider of financial services in these sectors and an opportunistic investor in these and related sectors. Its strategy is to use investment activities to generate advisory services revenue while creating value for its shareholders through asset accumulation. Sunwah continues to operate as a China focused multi-discipline asset based financial services firm, with a concentration on natural resources, infrastructure and real estate.
