O’Melveny Represents RIT Capital Partners in Establishment of Joint Venture Fund Management Company to Operate in China

四月 01, 2011



Andrea Rodeschini
O'Melveny & Myers LLP

Piper Hall
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.   

About O'Melveny & Myers LLP's Investment Funds and Securitization Practice

O'Melveny & Myers LLP's Investment Funds practice is truly global, with lawyers located in New York, California, London, and Asia who have experience working with investment funds investing in the United States and North America, Europe, Scandinavia, Asia, India, Africa, the Middle East, Latin America, and other emerging markets.  Our lawyers are focused on the key areas of law affecting investment funds, including corporate law, partnership law, tax, ERISA, and US and non-US securities laws.  We have worked across the full spectrum of investment fund product types, and have represented fund clients with many different industry focuses.  O'Melveny's Securitization team is a recognized leader in structuring, negotiating, and closing complex financing transactions around the world.  For more than half a century, our lawyers have handled novel securitizations and stayed ahead of the curve.  We played a part in some of the first securitization deals involving traditional receivables, as well as innovative transnational and synthetic financings in esoteric new asset classes and emerging markets.  As authorities in this field, we are counseling Chinese governmental agencies on developing the legal structure for its securitization market and proposed amendments to existing laws and regulations


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