The JV will provide institutional and qualified private investors access to the China onshore market, including A-Shares and China mutual fund sector. The partnership will operate as Gottex’s distribution channel in mainland China.
Gottex will acquire a minority stake in the new company, while VStone will transfer its existing products and business activity to the new entity.
The transaction will include a cash consideration from both parties and Gottex will issue covered warrants over 1.725 million Gottex shares or roughly 5% of its issued share capital to the principals of VStone at an exercise price of CHF3.50.
The deal is subject to Chinese administrative approvals, which is expected to be granted within the next two months, the company said.
According to Max Gottschalk, chief executive officer of Gottex Asia, the asset management industry in China is still in its infancy stage and recent government reforms and continued support for the development of a fully developed capital markets shall further boost the growth opportunity for the asset management industry.
"Being able to offer our investors access to China’s onshore equity and bond markets through a highly professional team and institutional process provides us with confidence that we believe our new venture will become a great success," Gottschalk said.
VStone is led by chief executive officer Jiwu Chen and has total staff of 35.
"The partnership is not only on a capital level, but also based on a mutual recognition of ideas and goals. By leveraging the strengths and experience of both sides, the VStone Gottex partnership will have great prospects and create more value for our clients, shareholders and investors in the future," Chen of VStone said.
Incorporated in Guernsey, Gottex is the holding company of an independent global alternative investment management group, whose core business is providing alternative multi-manager and multi-asset solutions and related advisory and risk management services.
With offices in Guernsey, Lausanne, London, Hong Kong, New York, Boston, Luxembourg, and Zurich and affiliates in Melbourne, Tokyo and Wellington, the Gottex group had $5.8bn of total fee-earning assets.
Founded in 2008, Shanghai-based VStone Asset Management is a privately owned investment firms with investments in private equity, A-share private placement, and A-share secondary markets.
