Chinese investment and advisory firm RJ Capital Group has teamed up with Shenzhen-based conglomerate Tempus Holdings to launch a new US$300 million investment fund to back companies benefiting from the trend of consumer upgrade in China.
Tempus will provide full support in terms of capital and industry resources to the new vehicle, which was established last month, according to a company announcement.
The fund will target the consumption upgrade theme, with a focus on sectors such as travel, leisure and cross-border consumer trading and logistics. It is seeking investment targets that may have potential synergies with Tempus, which is engaged in business services, travel, modern logistics and cross-border commerce. International companies with a solid operation base, powerful brand and a strong management team will be the new fund’s primary targets.
"Our core strategy includes matching capital with real business, connecting China with global resources, and structuring multiple levels of funding," said Yao Liu, founding partner and chairman of RJ Capital Group. "by partnering with…Chinese enterprises such as Tempus Group and through smart, rational and highly efficient international acquisition and business integration, we can support the strategic transformation and industry consolidation of our corporate partners while also achieving excellent returns for our investors."
Tempus Group, the parent company of Tempus Holdings, generated more than RMB80 billion in (US$12 billion) annual sales and is ranked 206th of the Top 500 Corporations in China in 2016, according to its website.
RJ Capital is an industry-focused investment management and advisory firm founded in 2016 by three partners with prior experiences working at investment banks and private equity funds. No other information is available on the background of RJ Capital.
The pair have previously collaborated in overseas M&A projects since 2016. With the establishment of the new fund management company, the two is hoping to combine industry resources and capital to further explore global investment opportunities.
"The establishment of the M&A fund is an important strategic decision for both Tempus and RJ, after in-depth cooperation and with high mutual respect…In a historic era of capital-driven economy, this strategic cooperation will contribute to value creation for shareholders, consumers, and the whole industry," said Jacky Huang, director of Tempus Group, in an announcement.