Instead
of answering your question point by point, I’d like to explain more at an
aggregate level about what we do.
The
(Chinatrust) group has an objective eventually to set up a management company for
the private equity it is to raise. Actually we can reasonably expect to close raising
a fund by the end of this year. For this fund (which is likely to attract
a significant Chinese financial institution to be the anchor investor), it will
focus on growth opportunities (with no control) in the greater
We
are also in process of setting up a distressed-asset fund (to be
Funding
source/approval process
Except
for the mezzanine debt investment, which directly utilized the commercial bank’s
balance sheet, other investments were done via subsidiaries controlled by the
financial holding, whose capital have mostly been the dividends up by the bank.
For debt and equity, we in general have a formalized two-stage approval process-
one at the originating business unit and the other at the financial holding’s respective
committees. However, for PE investment the process is lengthened as the deals usually
need be also approved by the board of the financial holding. Timing wise, the
review/approval process can take a minimum of three weeks for debt and one to
two months for equity (primary deals). It to a certain extent depends on the
nature of the transaction; an early stage VC investment may require a longer due
diligence.
Immediate
focus
As mezzanine
debt investment can directly tap the bank’s balance sheet (and thus less
capital constraint), we are seeking suitable targets from both primary and
secondary to build up a portfolio this year (non-distressed, non-bank; non-real-estate)
to bring in cash flow. (We made two investments earlier this year.) I will be
happy to look into them if you happen to have mezz in your pipeline.
We have
set the directions but some details are still to be discovered and determined
when dealing with a quite dynamic and fluid world as is. Please do let me
know if you have further questions.
Best
regards,
Juliana
Juliana Hou
SVP, Principal Investment Division
Chinatrust Commercial Bank
No.3, Sung
Tel: +886 2 2722 2002 ext 1225
Fax:+886 2 8780 9960
From:
Devon Archer [mailto:darcher@rosemontcapital.com]
Sent: Friday, April 29, 2011 7:17
PM
To: 侯文齡(Juliana Hou )
Cc: Hunter Biden;
Subject: Re: RREAF follow-up
Importance: High
Juliana,
Thank
you kindly for your thoughtful reply. We will stand by patiently on the
real estate side and update you on our progress as we develop our portfolio in
RREAF. I am certain as you track our progress the offering will become
overwhelmingly compelling from a a risk adjusted return for your profile, and
you will reconsider at that time.
That
being said, I run the private equity and merchant banking divisions at
Rosemont. I would be very happy to start exchanging information and
dealflow. We are very active in the market of energy, technology,
services, media and telecom, consumer and other in both the
If
we are going to be effective in collaborating I need to ask that you send me a
more specific profile of what type of dealflow you are interested in and where
you are interested in playing in the capital structure. It would helpful
if you could review the following. As it relates to PE; is Chinatrust
interested in:
- Funds level investments?
- Direct control investments?
- Direct co-Investments?
- Secondaries; funds or direct?
- Equity?
- Debt?
- Equity &
debt?
- What sectors?
- What geographies?
- What is the investment time horizon?
- What stage (ie, venture (early/late),
growth, LBO, sunset, special situations, etc.)?
- What is the duration for investment
decisions for Chinatrust (ie, from initial screen to funding)?
Additionally,
it is important that we understand what group w/n Chinatrust your interest in
PE is generated from, what are the sources of capital, who are the decision
makers and what is their process and timing for decision making.
Additionally any other information that can
help target our thinking will be useful in helping us develop a long,
productive and fruitful relationship.
I
will forward you some examples of recent PE investment memo's we have prepared
that describe assets that we have made PE investments, under separate cover, to
give a little insight into our portfolio and our more recent transactions.
All
the Best,
From: "侯文齡 (Juliana Hou )" <juliana.hou@chinatrust.com.tw>
Date: Fri, 29 Apr 2011 06:39:49
-0400
To: Devon Archer <darcher@rosemontcapital.com>
Cc: Hunter Biden <hbiden@rosemontseneca.com>,
"C.M. Hsiao" <cmhsiao@chinatrust.com.hk>,
"
Subject: RE: RREAF follow-up
Hi,
Thank
you very much for sending the material again to me. It was my pleasure to meet
you in
Subsequent to the
meeting, we have internally reviewed our investment plans and where we like the
resources to be placed. However, we feel the real estate markets may not bewhat
we like to pursuit eagerly at this moment. Chinatrust has been a bank
precautious about the real estate markets with its homeland,
In spite of our less aggressive intension towards real estate, we
would very much like to explore with you on other fronts, namely investments in
industrial and other commercial sectors. I will pass the contact information of
Mr. James Bulger and Ms. Caryn Suffredini to Mr. CM Hsiao (who is also copied
in this email, a managing director-principal investment division currently
resides in Beijin) for future contacts. Please do let me know if there is any
thing I can be of assistance. I sincerely hope we will be building a
mutually beneficial relationship.
Best regards,
Juliana
Juliana Hou
SVP, Principal Investment Division
Chinatrust Commercial Bank
No.3, Sung
Tel: +886 2 2722 2002 ext 1225
Fax:+886 2 8780 9960
From: Devon Archer [mailto:darcher@rosemontcapital.com]
Sent: Thursday, April 28, 2011
8:59 PM
To: 侯文齡(Juliana Hou )
Cc: Hermes Chang
Subject: RREAF follow-up
Importance: High
Juliana,
Thank
you kindly for your time this past week in
All
the Best,
Rosemont Capital, LLC
o: 212 933 9965
f: 212 933 9964
m: 646 436 3745
www.rosemontrealty.com
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