GRAND CAYMAN, Cayman Islands, June 7, 2011 /PRNewswire/ -- Cayman Islands based Equity Partners Fund SPC has established a new segregated portfolio which will conduct business under the name Zigong Commercial Equity Partners Fund to make investments into China. Through this strategic relationship with Zigong Commercial Bank Co., Ltd. the investment model used by Equity Partners Fund SPC will be implemented to provide funding to qualifying listed companies.
ICAN Capital Inc. has been engaged to conduct due diligence and refer potential companies to Zigong Commercial Equity Partners Fund for possible funding. Zigong Commercial Equity Partners Fund generally looks to invest amounts from $25 million up to $500 million in Chinese companies listed on various exchanges with consistent trading volumes. Companies often need additional capital for a variety of activities including working capital, acquisitions and other growth opportunities.
Fund spokesperson Herry Gasser says the fund focuses on equity investments in public companies as well as private companies that will be listed on a securities exchange within six months of a funding commitment.
"Unlike hedge funds which have significant regulatory burdens exposing their investors to higher risks, Zigong Commercial Equity Partners Fund is able to act quickly, is more flexible when it comes to structuring an investment and has less regulatory burdens," Herry Gasser says.
"The fund has no outside investors and is considered a private fund run by its principals, similar to a merchant bank that invests its own capital and as such it is seeking capital appreciation through the identification and funding of liquid growth companies."
"The fund will approach various companies such as manufacturing, construction, professional services, healthcare and finance who are all looking for growth or acquisition funding which is difficult to find given current global economic conditions."
The fund's investment guidelines, apart from a company's size and liquidity, require them to have exceptional management and long-term sustainable growth opportunities with the potential to achieve significant milestones over a developmental period.
"While interested companies should meet basic due diligence requirements, our funding arrangements are much simpler than many other avenues such as rights issues and other underwritten issues," Herry Gasser says.
"Ultimately once a company satisfies our requirements we send proposed investment terms and explain the steps required for the company to ultimately obtain the requested funding.
"In volatile and uncertain equity markets this pre-qualification and pre-agreed funding arrangement is superior in most circumstances."
SOURCE Equity Partners Fund SPC