Hong Kong-based hedge fund Value Partners has signed a partnership with US asset manager Affiliated Managers Group (AMG) to work on joint product development and strategic distribution opportunities.
"This will help in enhancing the distribution channels and therefore achieve wider access to the key and target markets of Value Partners," says the Hong Kong firm.
AMG, whose assets under management (AUM) totalled $200 billion as of 30 September, has equity investments in a diverse group of investment management firms.
Value Partners has $5 billion in AUM, focuses on Greater China and the Asia-Pacific region and manages absolute-return, long-biased funds; long-short hedge funds; private equity funds; and quantitative funds.
Cheah Cheng Hye (Value Partners' chairman and chief investment officer), So Chun Ki Louis and Hung Yeuk Yan Renee (both deputy CIOs) are selling 70,738,000, 5,045,000 and 5,045,000 shares respectively -- or 5.05% of Value Partners -- to AKH Holdings, a subsidiary of AMG.
Cheah will remain a controlling shareholder of Value Partners with an equity interest of 31.23%.
"We have been continuously seeking opportunities to add value to our shareholders, our clients and our business," he says. "We are impressed by AMG's partnership approach, as well as their expertise in product distribution and development on a global scale. In return, we will get cost-effective access to AMG's highest-quality operational resources.
"The shares sold by my colleagues and I represent only a small part of our shareholding in Value Partners," adds Cheah. "Our sale facilitates AMG's entry as an important new shareholder."
This agreement follows another recent partnership -- struck between Value Partners and China's Ping An Insurance in August to launch exchange-traded funds in Hong Kong. The deal involves Ping An buying a 50% stake in Value Partners' Sensible Asset Management Hong Kong.
Cheah was named one of the 25 most influential people in asset management in Asia by AsianInvestor in May.