The New Private Equity China Fund
=E2=80=95=E2=80=95=E2=80=95John Kramer & John Pang =E2=80=95=E2=80=95=E2=80= =95
J&J fund
Contact: John Pang Email: snipped-for-privacy@gmail.com
Fund Objective
The New Private Equity China Fund (The Fund) has been formed to achieve superior financial returns for its partners through investing in multi-areas. The investment targets for the new co-investment fund would be the high-growth business enterprises or investment projects on the industry of New Energy, TMT, real estate, mining, sectors in Mainland, China.
The new Fund will be set up as a BVI Investment Holdings company with shareholders and Partners from both J&J and overseas investors. Both J&J and the overseas investors could nominate its representatives to be the partners of the fund as well as GP of the fund. The General Partner of the New Energy China Fund is J&J Investment Management Ltd., a BVI or Cayman Islands company. Each partner should pay his management fees to the Fund Management Company under the fund. The rate of the management fee should be 2.5%.
Fund Size and types of Transaction
The Fund is seeking to raise approximatelyUSD100 million. The target is in keeping with the average size of deals being currently completed in China of USD10-50million and reflects a realistic, if ambitious, target for a first fund. If the investment opportunities are presented to the fund before the full amount is committed. The General Partner will consider calling a first closing at a lower level of commitment to avoid missing an important investment opportunity. Fund will encourage banking and financial services companies
Promise and Call System
In accordance to prevailing international fund management practice, the new fund will adopt the =E2=80=9CPromise and Call System=E2=80=9D, i.e.= upon the establishment of the co-investment fund, both J&J and the overseas investors will commit the total amounts of investment for the fund respectively, but there is no need for either side to inject the money in one goes. When an investment project has been tabled by the Fund Managers and approved by the Partners of the fund, then each side will provide investments directly into the approved project according to the pre-agreed proportion.
Fund Management Team.
The leadership of the Fund consists of people who have broad and relevant experience.
=EF=81=AC 8 -10 years solid experience in Investment Banking Sector in China =EF=81=AC All of the group members can speak Chinese and English fluently, hold degrees from top universities in Both Europe or America =EF=81=AC Holding plenty of good projects in hand, cost over 20 billions US$ =EF=81=AC Successfully managed companies listed on stock exchange worldwide, including China Bio diesel (AIM:CBI) =EF=81=AC Have strong relationship with Chinese government and banks =EF=81=AC Have specialized talent people in private equity field. =EF=81=AC Team Member:
Mr. Kramer earned his MS in Accountancy and BS in Analytical Finance from Wake Forest University. Mr. Kramer received his CPA in 2005 and completed the Charted Financial Analyst (CFA) program in 2006 while studying Mandarin in the PRC.
Mr. John Pang earned his MBA in Business and Financial Management from University of Liverpool, eight years solid management and investment banking experience in China, has strong relationship with Chinese Government, successfully helped two companies listed in Singapore and London Stock Market.
Mrs. Clara. Yip with 15 years experience in Investment banking and Private Equity sector, as one of key roles in the management team, She successfully invested over 30 projects. She gained degree from New York University.
Achieved Projects
=EF=81=AC =EF=81=AC China Wheel (E94.SI) =EF=81=AC =EF=81=AC China Biodiesel (AIM:CBI)
A Part of Potential Project
=EF=81=AC A.- The total investment should be 500 million RMB. The average P/E of Wind industry on domestic stock market is 30 times. Return: After all of installation, the annual sales will be 325 million RMB with 30% of gross profit margin and 20% of net profit margin. Prospect: The project will be listed in 3 years. And in 4-5 years, the borrowings will be paid off. According to the statistics of overseas stock market, the return on investment will be 8 times after listing.
=EF=81=AC B- The total investment should be 460 million RMB. The average P/E of Wind industry on domestic stock market is 30 times. Return: After all of installation, the annual sales will be 258 million RMB with 30% of gross profit margin and 20% of net profit margin. Prospect: within 1 year to finish the construction of plant and to commence. The project will be listed in 3 years. In 5 years, the borrowings will be paid off. According to the statistics of overseas stock market, the return on investment will be 8 times after listing.
=EF=81=AC C- The total investment should be 430 million RMB. The average P/E of Wind industry on domestic stock market is 30 times. Return: After all of installation, the annual sales will be 60 million RMB with 28% of gross profit margin and 15% of net profit margin. Prospect: in 3 years to commence. The project will be listed in 4 years. In 5 years, the borrowings will be paid off. According to the statistics of overseas stock market and the project=E2=80=99s profit, the return on investment will be 6 times after listing.
=EF=81=AC D- The average P/E of Wind equipment industry on domestic stock market is
42.55 times. Return: The estimated sales will be 2 billion RMB with 35% of gross profit margin and 25% of net profit margin. Prospect: The project will be listed in 2 years. In 3 years, the borrowings will be paid off. According to the statistics of overseas stock market, the return on investment will be 10 times after listing.
=EF=81=AC E- The average P/E of Wind equipment industry on domestic stock market is
42.55 times. Return: The sales in 2006 were 300 million RMB with 30% of gross profit margin and 20% of net profit margin. Prospect: The project will be listed in 2 years. According to the statistics of overseas stock market and the project=E2=80=99s profit, the estimated return on investment will be 9 times after listing.
=EF=81=AC F- Established in 2003, Commenced in 2005 Return: The sales in 2006 were 14 million RMB with 50% of gross profit margin and 30% of net profit margin. Prospect: If private placement is injected in this year the project will be listed in 2 years. And in 4-5 years, the borrowings will be paid off. According to the statistics of overseas stock market, the estimated return on investment will be 10 times after listing.
=EF=81=AC G - It is a large and comprehensive enterprise engaging in manufacture of oil and petrochemical equipment in China. It is comprised of 5 branches and 6 holding companies nationwide. In 2006, the sales reached 580million RMB. Prospect: Become one of the biggest petroleum equipment companies around China in three years. The revenue will reach 1.3 billion RMB in
2007 and 2.35billions RMB in 2008.
=EF=81=AC H =E2=80=93 power -saving
The new technology, which is used in military and general engineering field worldwide, hold more than 600 million RMB orders in hand. The net profit margin is over 95%. It is esteemed as the most valuable revolution in 2006 by China Military Dept. This Technology is shacked the central Military committee of PRC. Net profit in 2008 will reach
1billion USD.
Fund Strategy
=EF=81=AC Focus: cover all of the industries (especially on New Energy, TMT, real estate, mining, sectors ) =EF=81=AC Regions: Mainland China =EF=81=AC Stages: from early stage to expansion stage. =EF=81=AC Listing: in China, Hong Kong, USA, and UK.