02 Mar Nord Engine Capital is established in the City of London
Nord Engine Capital, a private equity investment adviser, has announced its business launch in the City of London. NEC is positioning itself as a bridge between UK, European and North American entrepreneurs, and the fast-growing markets in China.
NEC is initially looking to deploy £200m in order to bring SMEs into the Chinese markets, focusing primarily on the clean technology sector to respond to China’s most immediate environmental challenges.
The recently established private equity investor has formed a strategic partnership with the Shanghai-based Nord Engine Asset Management Group to provide portfolio companies with growth capital, first-hand knowledge of China’s markets and regulatory environment, and bespoke investment advisory services. Established in 2008, Nord Engine Asset Management Group has RMB20bn (£2.26bn) AUM and the groups expertise lay primarily in private equity, fixed income, and real estate.
NEC’s primary investment strategy is to inject capital and take a material stake in portfolio companies, aligning interests with the shareholders’. “The traditional collaborative model between UK and Chinese companies often results in competition and risks for UK innovators because their Chinese partners are in the same industry”, NEC’s CEO, Yang Zhu, said. “However, Nord Engine Capital is a fund provider and will not become a threat to the UK’s technology-oriented SMEs. On the contrary, by being a shareholder, it is within our best interest to share our network of strategic partners, marketing platforms, and distribution channels in China with our investee companies to help them succeed in this emerging market.”
Within the next few years, NEC is planning to develop an investment team of 10-12 staff and manage a fund of £500m – £700m with a diverse portfolio of more than 100 small to medium-sized enterprises that have promising potential of expanding their businesses into China.
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