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RAB Capital’s plan to sell two hedge funds disintegrates

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After Hedgeweek reported at the end of June that Sunwah International Asset Management (the investment management arm of Sunwah International Ltd) was pre

After Hedgeweek reported at the end of June that Sunwah International Asset Management (the investment management arm of Sunwah International Ltd) was preparing to buy two of RAB Capital’s hedge funds, it was reported this week that the deal had fallen through. Referring to the Financial Times, FINalternatives said that Sunwah, controlled by the Hong Kong billionaire Choi family, had pulled out of the deal because RAB was unable to complete the sale of its Energy and Octane funds until Sunwah bought a UK fund management platform. Sunwah was planning to acquire an 80 per cent stake in PCE Investors, the FSA-regulated institutional management platform, and onto which it had intended to migrate the two RAB funds. At the time, Doug Betts, CEO and President of Sunwah said that SIAM had a “target to achieve USD1billion of assets under management by year-end”. The fate of the PCE deal is unclear. RAB Capital is apparently happy to continue running the USD300million Energy and Octane funds according to the FT as it seeks to rebuild the business around its reconfigured Special Situations fund. Speaking about the failed acquisition of the funds, Betts was quoted as saying: “The current market uncertainties in the United States and Europe have created an environment in which proceeding with the contemplated novation became increasingly difficult,” adding that Sunwah remained “100 per cent committed” to developing its asset management business.

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