RIT Capital Partners Plc is helping raise $750 million from Chinese wanting to invest in private equity deals overseas, Chairman Jacob Rothschild said.
The London-based investment trust is working with Chinese industrial group Creat Group and Beijing-based investment-advisory boutique Quercus Ventures to create J. Rothschild Creat Partners, the parties said in a statement today. The newly formed fund manager will buy “significant” minority stakes in closely held firms outside of China, excluding Japan, they said.
“This unique venture will allow China’s private sector to invest in Western companies, whilst providing opportunities for Western companies to enter China’s rapidly growing and vibrant economy,” Jacob Rothschild said in the statement.
RIT and Creat will commit seed capital to the fund and other investors will primarily come from the China International Chamber of Commerce, whose mandate is to help Chinese companies invest overseas, according to the statement. Creat’s founder, Dr. Zheng, is chairman of the Chinese chamber.
“Increased integration through overseas investment by the Chinese private sector and further participation in China’s growth by Western companies is an important step for the global economy,” Zheng said in the statement.
Creat was founded in 1992 and has interests in banks, pharmaceutical companies, electricity-equipment manufacturing and juice-concentrate production, according to the statement.