Penjing Asset Management has entered into a joint venture agreement with Triple A Partners and its affiliates to raise fresh investment capital to help seed start-up hedge funds in the Asian region.
The existing Penjing Seed Fund will be renamed the Penjing Triple A Partners Emerging Managers Fund.
Triple A Partners will become a co-investment adviser to the fund while Penjing will remain as the investment manager with key responsibilities of sourcing and selecting managers, as well as managing the fund.
Triple A Partners will have specific responsibility for marketing the vehicle and joint responsibility for helping source and structure new deals.
Ronnie Wu (pictured), general partner and chief investment officer of Penjing Asset Management, says: “We are looking forward to joining forces with Triple A Partners and to the additional depth that this relationship will add to our existing team. Triple A Partners’ experience in marketing, deal sourcing and structuring will be invaluable in ensuring the success of the joint venture. We have designed an innovative and flexible structure which we believe addresses many of the historical problems that the seeding industry has faced over the years.”
“This is a very exciting development for our business” adds Hans Tiedemann, chairman of Triple A Partners. “Whilst many hedge fund seeders have shut up shop, Triple A Partners have remained focused on opportunities in Asia. We have gained invaluable experience in this domain since launching the business at the beginning of 2007 and weathered one of the most challenging periods in the history of financial markets. Our timing could not be better. It has been a long time since there has been such a range of talented managers looking for capital and such a shortage of providers to supply that need. Partnering with Penjing who has a solid track record in managing Asian fund of hedge funds and proven success in sourcing new hedge fund talent provides an ideal match of one another’s core competencies. Together we are targeting a minimum raise of USD100m for the fund. “
The new joint venture seed fund will target large institutional investors, family offices and wealthy individuals in the Asian region and globally. The parties will be assisted in raising capital by Anglo Chinese Corporate Finance, a boutique investment banking business based in Hong Kong and specialising in advising or raising capital for companies based in or investing in Greater China.
