Silk Road International Development Fund

 

Executive Summary 

 

The SRCIC Silk Road International Development Fund (“the Fund”) aims to fund deals introduced by SRCIC members. The Fund’s edge will be its ability to be a “fund pool” and “deal pool”, and a bridge to international capital market. In China and countries along the Silk Road, the majority of small and medium enterprises have limited access to traditional bank financing and public equity markets and have not kept pace with the rapid growth of private enterprises. The Fund targets to bring in a Chinese domestic asset management company and a government seeding fund to become strategic investors to bolster domestic fund raising capabilities. The target fund size will be USD 5 billion with the initial tranche being USD 500 million. Also, the Fund targets to generate a 7% cash return per annum (gross of tax) to all investors. The total target gross return is 13%-15% per annum.

 

 

OVERVIEW OF SRCIC SILK ROAD INTERNATIONAL DEVELOPMENT FUND

 

The SRCIC is premised on the cooperation of its members to promote balanced and sustainable development of the economy and society in countries along and within the Silk Road. The SRCIC Silk Road International Development Fund is one of the key initiatives of the SRCIC to provide a platform for members to communicate, exchange ideas and financially benefit from the growth and development of Silk Road. The Fund is inviting initial funding from all SRCIC members to participate the initial funding for the Fund. The proposal is for Founding Investors to subscribe a 20% stake in the holding company of the Fund. The rest 80% stake of the holding company will be offered to all the members with a minimum commitment of US 5 million. The unsubscribed portion will be underwritten by the Founding Investors. The Founding Investors will introduce a major China asset management firm to be the anchor investor at the initial launch and the China asset management company would be the co-general partner to manage the Fund. For any projects introduced by the members, it will require the respective member to participate along with the Fund.

 

 

 

 Self Photos / Files - Organization Chart v3



  

 Self Photos / Files - general partner

 

INVESTMENT OBJECTIVE AND STRATEGY

In light of the macro dynamics, our investment approach is on the conservative end of the alternative investment spectrum, namely capital preservation with equity options to allow us to share in the upside. Flexibility to invest across the capital structure allows us to invest where it makes the most sense from a risk-adjusted return perspective and look at strategies when it is the right time for them and not be pigeon-holed. The SRCIC has selected several key investment themes, including: consumer goods; transport; tourism; financial services; energy; SME finance and e-technology.  The Fund will work with the Founding Investors and Strategic Investors to source and structure deals, mitigate risk and execute exit strategies via trade sales, IPO and in certain larger transactions restructuring to potential investors and other development funds.

 

 

TRACK RECORD

Competitive Advantages

  • The SRCIC is one of the largest chambers of international commerce with over 40 countries to participate in the upside on deals sources from SRCIC members.
  • SRCIC blends institutional capital with proven entrepreneurs and government relationships to generate superior risk adjusted returns.

 

 Self Photos / Files - terms

 

 Email: cooperation@srcic.com