O’Melveny Represents RIT Capital Partners in Establishment of Joint Venture Fund Management Company to Operate in ChinaApril 01, 2011
FOR IMMEDIATE RELEASE
O'Melveny & Myers LLP
O'Melveny & Myers LLP
LONDON ─ APRIL 01, 2011 ─ O’Melveny & Myers LLP represented RIT Capital Partners (RIT) in the establishment of J. Rothschild Creat Partners, a first of its kind joint venture fund management company to operate in China, providing a ground-breaking and unique opportunity for China’s private sector to invest in an overseas private equity fund. The joint venture, a collaboration between RIT, Creat Group (Creat) and Quercus Ventures, will create a vehicle that will enable Chinese private sector onshore money to invest overseas through a private equity fund for the first time. O’Melveny London partner Justin Stock represented RIT in this matter, with London partner Jan Birtwell providing tax advice.
The first fund to be launched will be a private equity fund which will take significant unleveraged minority stakes in international companies across a wide range of sectors, including technology and clean tech, the green economy, healthcare, natural resources, and luxury goods.
The target fund size is US$750m, with RIT and Creat both committing seed capital. Investors will primarily come from the newly formed China International Chamber of Commerce for the Private Sector which has been tasked with enabling and organising overseas investment by Mainland Chinese private enterprises. In due course, the joint venture expects to launch other product lines which offer further opportunities to maximise the parties' respective strengths and unique ability to access Chinese onshore capital for overseas investment.
“For the first time, this revolutionary venture will create a vehicle that will allow Chinese private sector companies to invest in international companies, while simultaneously opening windows of opportunity for Western companies to enter China’s rapidly expanding and thriving economy,” said Stock.
RIT Capital Partners is an investment trust with net assets of some £1.9 billion which is listed on the London Stock Exchange. It is chaired by Lord Rothschild whose family interests retain a significant holding.
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