HONG KONG, July 27, 2015 /PRNewswire/ --
Fund Will Focus on
Cross-Border Buyout Opportunities and M&A of
Target Companies
GSR Capital, a leading technology investment house based in
Hong Kong, Beijing and Palo Alto, with investment
products in early stage VC, RMB Funds & GSR GO Scale Capital
growth fund, today announces the launch of a new mergers and
acquisitions (M&A) fund of $5 Billion
USD. The fund is targeting cross-border buyouts and M&A
of industrial and emerging technology companies with multi-billion
dollar scaling opportunities in China.
The GSR Global M&A fund is anchored with $1 Billion USD committed from GSR GO Scale
Capital Limited Partners and institutional investors. The fund will
be managed by GSR GO Scale Capital Advisor Ltd., the management
company of the GSR GO Scale Capital Growth Fund, and intends to
work closely with Good Resources Holdings Limited (HKEX: 00109) on
management of all M&A deals with leverage of financial
instruments, including co-investments from the global capital
market. The fund will be managed by a team of industry leaders led
by Sonny Wu, the Co-founder of GSR
Ventures and Chairman of GSR Capital.
The global M&A market has seen continuous growth with the
total transaction value in 2014 exceeding $3.5 trillion USD. GSR Global M&A Fund, as
one of the very few large-scale buyout funds in China, will target international investment
opportunities in qualified leading enterprises in sectors including
clean energy, bio-pharmaceutics and life sciences, bulk commodity
investment, traditional and internet finance, wireless
communication, and cultural industry.
"Our new fund will either buy-out or acquire a minority stake in
target enterprises through a combination of equity and leveraged
debt; and then we will create value for them by converging
China and global resources,
adopting cross-border and technical arbitrage and eventually
realizing the capital gains through IPO or M&A exits," said
Sonny Wu, Co-founder of GSR Ventures
and Chairman of GSR Capital.
"As one of the founders of the Trinity Group along with
Ambassador Ford Fraker, we have had the great privilege to work
with some of the most successful global buyout groups over the last
twenty years. It is our strong belief that having worked with
Sonny Wu, GSR GO Scale Capital for
the last 2 years and recently Good Resources Holdings (HKEX:00109),
we have witnessed the emergence of a world-class team of both
investment professionals and operating partners. GSR GO Scale
Capital, its partners and affiliates are on track to become one of
the most outstanding and auspicious buyout groups of their
generation and region," said Edward
Frazer, Founder and CEO of Trinity Limited, a U.K. based
private investment banking firm.
Prior to the formation of this Global M&A Fund, GSR GO Scale
Capital had already established an SPV to acquire 80.1% of the
shareholding of Lumileds, the original LED component and the
automotive lighting company under Royal
Philips (NYSE: PHG; AEX: PHIA). Lumileds is the market
leader in the LED industry with market share of more than 10% in
the global general lighting, more than 30% in the automotive
lighting and more than 50% in the mobile phone lighting market. Its
customer base includes global market leaders such as Audi, BMW and
Samsung. Lumileds is also a technology innovation leader owning 20%
of the total global LED patents.
The announcement of the Philips Lumileds acquisition on
May 27, 2015, was followed by GO
Scale Capital and Philips choosing Bank of China as Mandated Lead Arranger and Sole
Bookrunner of $1.93 Billion USD debt
facilities to finance this landmark transaction. Bank of
China has an extensive global
service network, a diversified business platform and international
business expertise to provide leveraged buy-out financing in
support of private equity clients' acquisitions globally.
"We believe in the market potential of Philips Lumileds. And GSR
GO Scale Capital demonstrated its deep understanding of the
industry, its ability to quickly make decisions, as well as its
professionalism and strong execution capabilities, which is among
the top echelon of its peers. We look forward to working together
on more deals through the GSR Global M&A Fund," said the
Corporate Banking Group of the Bank of China.
"GSR Global M&A Fund will continue duplicating the early
investment successes in Boston Power, Airspan and Philips Lumileds,
creating value and superior returns through China localization with a top-notch team of
industry leaders like Dr. Sun Shiwei, Jiang
Hua and Allan Kwan, who are
among the top experts in semiconductors, telecom and wireless
internet," added Wu.
About GSR Capital
GSR Capital is one of the most active technology investment
firms in China with offices in HK,
Palo Alto and Beijing with focus
on wireless internet, clean energy, semiconductors, and
pharmaceutics and healthcare. The GSR family of funds currently has
over $2 billion under management. GSR
Capital is committed in building great technology companies
globally leveraging the China
market forces, disruptive technologies and operational
leadership.
About Good Resources Holdings Limited
Good Resources Holdings Limited (HKEX: 00109) is a limited
liability company incorporated Bermuda listed on The Stock Exchange of Hong
Kong Limited. The company focuses on investments and& M&A
management in six major industry sectors, including finance and
funds, clean energy, pharmaceutics and life sciences, commodity
investment, internet finance, and cultural industry.