New Silkroutes Group (NSG) has started a joint venture with CG Capital Partners LLC, a boutique American fund manager, to offer fund management services aimed at investors in Asia. NSG will own 70% of this JV with CG holding the remainder.
Formerly called Digiland International Ltd, NSG describes this shift into fund management, with a focus on structured, or customised investment products, as a chance to not only earn fund management fees. It is also hoping to draw some funds for its existing businesses in IT and energy.
The joint venture, to be based in New York, will be called New Silkroutes Capital LLC. The partners are trying to register it with the US Securities and Exchange Commission. There are plans to start operations in both Singapore and New York next month. Further expansion to cities like London, Malta, Shanghai, Hong Kong and Kuala Lumpur are planned.
“As investment company going forward, we want to now secure our asset management license to be able to raise funds as well from other sources,” says NSG CEO Dr Goh Jin Hian.
“We have been looking for a partner here in Asia, to create a platform that will allow capital that is coming out Asia, particularly family office capital, and marry that with opportunities here in America and beyond,” says Sean Rice, managing partner of CG Capital.
The old Digiland was in computer hardware distribution and sale, but has expanded into IT services and analytics. However, it was still loss making and was on the SGX watchlist. The company diversified into energy when it placed shares to acquire the International Energy Group, a trader of physical oil, which is under Goh.
This led to Goh assuming both an executive director and CEO position at NSG. Under Goh, the company has also inked an agreement with the government of Malta to build up an energy trading and storage facility controlled by Malta with a capacity of some two million metric tonnes. Goh, a medical doctor by training, is also eyeing future investments in healthcare.
Goh declines to say exactly how much this joint venture wants to raise from clients. “Scale is important in this business. At the very minimum, has to be at least $100 million per fund to make it meaningful.”
The joint venture will try and build funds built around these few broad themes. Besides healthcare, the partners are also eyeing real estate, information technology and its various subsets, as well as biotechnology and genomics, says Rice.
Meanwhile, venture’s Singapore-based team will help to identify “particularly strategies and particular asset classes that for one reason or another, experience price dislocation, or liquidity dislocation, which we expect to see more of in the next 12 to 18 months,” says Rice.
On Feb 2, a trading halt was called on NSG’s shares pending the release of this announcement. It last traded at 51 cents.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
Formerly called Digiland International Ltd, NSG describes this shift into fund management, with a focus on structured, or customised investment products, as a chance to not only earn fund management fees. It is also hoping to draw some funds for its existing businesses in IT and energy.
The joint venture, to be based in New York, will be called New Silkroutes Capital LLC. The partners are trying to register it with the US Securities and Exchange Commission. There are plans to start operations in both Singapore and New York next month. Further expansion to cities like London, Malta, Shanghai, Hong Kong and Kuala Lumpur are planned.
“As investment company going forward, we want to now secure our asset management license to be able to raise funds as well from other sources,” says NSG CEO Dr Goh Jin Hian.
“We have been looking for a partner here in Asia, to create a platform that will allow capital that is coming out Asia, particularly family office capital, and marry that with opportunities here in America and beyond,” says Sean Rice, managing partner of CG Capital.
The old Digiland was in computer hardware distribution and sale, but has expanded into IT services and analytics. However, it was still loss making and was on the SGX watchlist. The company diversified into energy when it placed shares to acquire the International Energy Group, a trader of physical oil, which is under Goh.
This led to Goh assuming both an executive director and CEO position at NSG. Under Goh, the company has also inked an agreement with the government of Malta to build up an energy trading and storage facility controlled by Malta with a capacity of some two million metric tonnes. Goh, a medical doctor by training, is also eyeing future investments in healthcare.
Goh declines to say exactly how much this joint venture wants to raise from clients. “Scale is important in this business. At the very minimum, has to be at least $100 million per fund to make it meaningful.”
The joint venture will try and build funds built around these few broad themes. Besides healthcare, the partners are also eyeing real estate, information technology and its various subsets, as well as biotechnology and genomics, says Rice.
Meanwhile, venture’s Singapore-based team will help to identify “particularly strategies and particular asset classes that for one reason or another, experience price dislocation, or liquidity dislocation, which we expect to see more of in the next 12 to 18 months,” says Rice.
On Feb 2, a trading halt was called on NSG’s shares pending the release of this announcement. It last traded at 51 cents.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment