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Arlene Busch
202-333-1880
Abusch@rosemontseneca.com


-----Original Message-----
From: "Jim Bulger" <jbulger@thorntonai.com>
Date: Tue, 25 May 2010 18:21:06
To: Arlene Busch<abusch@senecaga.com>; Devon A<darcher@rosemontseneca.com>
Subject: Fw: Fwd: Fw: Everbright

Folks
Here below you will find information on Mr. Chen and Everbright.
I had a good meeting yesterday in Boston with Shenyang and Mr. Chen. You may remember Shenyang she joined us at the dinner over looking the Birds Nest. Shenyang and Mr. Chen are good friends of Jonathan so remember that during you chat and please do not mention the Bohai Renewable Energy Fund, Jonathan is handling that and Everbright may be an LP in that fund at some point.
Mr. Chen spoke for a long time about Everbright and their assorted business' they are a very large firm with strong reaches to CIC and NSSF, as a matter of fact they are looking to help both of those outfits place money over seas. I did not mention our dealings with CIC and NSSF.
The firm is looking to be a bridge between investors coming into and investors coming out of China. They have the ability to make investments in certain deals they consult on so that would make Everbright a good ally for us. It is clear that being an SOE they have a good situation inside of China but they need help finding deals and companies to invest in the US.
They are in the process of closing a $1.5 billion USD infrastructure Funds for investment in China their partner is Macquarie. They have a Real Estate fund with the old Lehman team out of Hong Kong.
Everbright would make a great strategic ally but I would like Jonathan and Michael to quarterback the relationship. I will be meeting Shenyang again in Hong Kong in July.


My suggestion is sit listen and ask how you can help over here in the US I know they are trying to open an office here so that is one place we might be able to help but again let's have Jonathan and Michael guide the conversation if possible


Thanks
Jimmy


James J. Bulger
Chairman
Thornton Group LLC
14 Beacon Street, Suite 804A
Boston, MA 02108
Office Tel: 617.248.9440

-----Original Message-----
From: Michael Leonard <mleonard@thorntonai.com>
Date: Tue, 25 May 2010 14:10:27
To: Jim Bulger<jbulger@thorntonai.com>
Subject: Fwd: Fw: Everbright

Jim:

Here is some information on Mr. Chen and China Everbright.

==========================

*Mr. Chen Shuang*

Executive Director & Chief Executive Officer

Mr. Chen Shuang, is the Chief Executive Officer of the Group, the member of
the Executive Committee, Strategy Committee and the Chairman of Management
Committee of the Group. Mr. Chen has overall responsibility for the
operation of the Group. He is also a director and the General Manager of the
Legal Department of China Everbright Holdings Company Limited. Mr. Chen
holds a Master of Laws Degree from East China University of Politics and Law
and a Diploma in Legal Studies from The University of Hong Kong School of
Professional and Continuing Education. He is a qualified lawyer in the PRC
and a senior economist. Prior to joining the China Everbright Group, Mr.
Chen was the Chief of the Legal Department of Bank of Communications. He has
over 16 years extensive experience in commercial banking and investment
banking. He joined the Board in August 2004.


=========================


*Everbright's Strategy/Development*

**

*2009-8-19 Macquarie, Everbright in China JV to raise $1.5 billion*

http://cn.reuters.com/article/companyNews/idUKTRE57I19O20090819

SHANGHAI (Reuters) - Macquarie Group Ltd has formed a joint venture with
China Everbright Ltd to launch two funds targeting infrastructure which aim
to raise a combined $1.5 billion, joining a growing list of foreign players
expanding private equity investments in China.


The funds - one open to foreign institutional investors and the other to
domestic investors - will invest mainly in toll roads, railways, airports,
renewable energy and water projects in China, Hong Kong and Taiwan, the two
companies said on Wednesday.


Macquarie is Australia's biggest investment bank and manages $36 billion in
infrastructure equity globally. Everbright is a unit of China's
second-biggest financial conglomerate Everbright Group. The firms have
committed up to $100 million as sponsors of the two new funds, each
targeting a first close in 2010.


"We are confident that Chinese infrastructure continues to offer attractive
investment opportunities to both international and domestic investors and
that our first mover advantage will contribute to our success," David
Russell, Macquarie's head of private equity Asia said in a statement.


"Particularly in Asia and our emerging market businesses, we are constantly
reminded that key to the success of building sustainable, long-term
businesses is a commitment to being local."


U.S. private equity firm Blackstone Group LP, French brokerage CLSA and Hong
Kong-based First Eastern Investment Group have recently announced plans to
launch new funds in China, as the Chinese government seeks foreign
investment to revive the private sector and complement the country's 4
trillion yuan ($586 billion) stimulus plan that focuses on infrastructure.


"Greater China is one of the largest and most diverse markets in the world
and the market continues to offer enormous and rapidly expanding
infrastructure investment opportunities," said Chen Shuang, chief executive
officer of Everbright.


About $67 billion of foreign direct investments have been channeled into
China's infrastructure sectors by end-2007, while investment continues to
grow rapidly, fueled by the country's annual economic growth of 6 to 10
percent, Chen said.


Macquarie is a decade-old player in China's real estate market, and is
setting up a joint venture trust company in the country.


Last Friday, Blackstone, the world's biggest private equity firm, announced
plans to create a 5 billion yuan ($731.7 million) fund in partnership with
the Shanghai government.


CLSA plans to launch a 10 billion yuan local-currency fund via a newly set
up asset-management venture, while First Eastern aims to raise 6 billion
yuan selling funds in China, the companies said in separate statements this
week.


($1=6.833 Yuan)


*2010-2-26 China Everbright launches $439m fund to invest in clean energy
projects*

http://www.newenergyworldnetwork.com/renewable-energy-news/by_technology/energy_efficiency/china-everbright-launches-439m-fund-to-invest-in-clean-energy-projects.html

Hong Kong-based China Everbright has established a RMB3bn ($439m) fund to
invest in new energy projects, resources and affiliated enterprises.


The Everbright Jiangyun New Energy Fund’s investment period is planned to be
four years and its first phase of fund closing exercise reached RMB1bn
($147.5), Everbright said.


Everbright has established two previous venture capital funds of RMB500m
($73m) with the cities of Wuxi and Jiangyin in the Jiangsu Province which
invested in projects with significant growth potential, including the
technology industry.


The company said the larger scale of fund over its predecessors demonstrates
its increasing confidence in both of the cities’ economic potential.


‘The Everbright Jiangyin New Energy Fund will capitalise on our extensive
market network and competitive edges in asset management to generate
rewarding returns for investors and it will open even more capital channels
for local enterprises in order to accommodate their rapid growth,’
Everbright CEO Chen Shuang said.


Everbright already has commitments to a variety of fund management
businesses under its 3+2 macro asset management philosophy. Its direct
investment division has established offshore private equity funds under its
China Special Opportunities Fund series.


Its China real estate fund finished its first phase of fundraising last year
and it also has an infrastructure fund established with Macquarie.


Jiangyin Municipal Committee secretary Zhu Min-yang said the partnership
will enable the municipality to meet market requirements and develop at an
appropriate pace.


‘In addition, it will provide investment opportunities for Everbright in
infrastructural development projects supporting emerging industries,
creating a capital-based operation model of government participation,
diversified investment and market-driven operation.’


*2009 annual report*

http://www.everbright165.com/cmsfile/annual_report/7495_EW00165-Annual%20Report.pdf

*Outlook*

……

In 2010, the Group will speed up the formation of teams responsible for
secondary market funds such as hedge funds and SME funds, while focusing on
the growth and maturity of private equity funds, venture funds and asset
investment funds in the primary market, with a view to increasing the
overall size of AUM by bringing in capital from external sources.

* *

The SOF I managed by our Direct Investment Division has generated sound
rewards for its investors. Invested projects are developing well with good
prospects for IPO listing. For fully-grown projects we will seek to exit and
lock in profit at the right timing. Meanwhile, CSOF and its “parallel
investment fund” will continue to leverage the industry expertise to
identify sound investment opportunities and set up a new tranche as and when
appropriate. For the three venture funds established in respective joint
ventures with Beijing Zhongguancun, Wuxi City and Jiangyin City of Jiangsu
Province, which are in the investment stage, the Group will continue to
identify projects with strong potential for growth and drive for their
eventual IPOs, leveraging its excellent local networks and proven experience
in investment management.


For the Asset Investment Division, Everbright ALAM China Real Estate Fund
will make prudent investments in second-tier cities in joint venture with
domestic partners, while pursuing the second tranche of its fund raising
activities. We will strive for early completion of the global offering of
the first tranche subscription of China Infrastructure Fund, our joint
venture with Macquarie, and look to stock up domestic infrastructure
projects with promising stable returns. The first tranche subscription
amounts of RMB1 billion received by the new energy fund, set up in joint
venture with local enterprises of Jiangyin City, will be investing in
high-growth enterprises in the energy and natural resources sector in
support of the government’s policy to develop low-carbon industries.


As an integral part of our “3+2 Macro Asset Management” business platform,
the secondary-market investment fund of our Asset Management Division
effectively meets the diversified needs of institutional clients, improves
the efficiency of resource allocation and complements the Direct Investment
business and Asset Investment business, which are currently focused on the
investment of non-listed companies. Plans are in the pipeline to restructure
this business segment and step up with the reorganisation of its management
team. We will strive to launch new investment products during the year and
expand the size of AUM and enhance returns.


At the Investment Banking Division, our IPO sponsorship and underwriting
businesses are expected to have better performance in 2010, on the back of
solid strengths fostered over the years. In connection with our Brokerage
business, we will continue to increase our marketing efforts. With enhanced
ability in the provision of comprehensive products and services, will move
for closer cooperation with Everbright Securities, the Brokerage Division
and the Investment Banking Division with a view to accomplishing stronger
resources sharing and management integration.


In addition, the Group together with sister companies of China Everbright
Group will continue to identify suitable targets in the Mainland market for
acquisition. Provided that the price is reasonable, we may try to acquire a
trust company in order to expand our RMB asset management business and to
complement our Hong Kong business. Such synergy is beneficial to all
parties.


As an important partner of the Group for participation in the domestic
securities market, Everbright Securities’ overall strengths have been
significantly improved following its IPO listing. With the availability of
strong capital resources, Everbright Securities will reinforce its position
in the traditional securities business through the expansion of its network
of business outlets. With proven capabilities in risk management and product
development, it will also strive to be a frontier in innovative businesses
such as collective asset management, stock indices and futures and margin
financing. The successful listing of Everbright Securities has also paved
the way for more substantial and in-depth cooperation with the Group. The
two parties join forces to forge a cross-border brand name with formidable
strengths, and to offer a full range of financial products and services.


……

========================


*Everbright's current Business Scope*


*1. Direct investment*

*Private Equity Fund*

Everbright has been managing private equity investments in Mainland China
through its subsidiary*.Its 2004 vintage China Special Opportunities Fund I
is now coming to fruition with portfolio companies being listed on stock
exchanges in Hong Kong, Shenzhen and the U.S. Building on its solid track
record established over the last few years, Everbright Private Equity has
recently raised its second China Special Opportunities Fund focusing on
sectors with high growth potential in China. Leveraging the reputation of
Everbright and the extensive network and expertise of its investment team,
Everbright Private Equity is determined to share with investors the high
returns generated from the rapid growth of the Chinese economy.


Investment strategy:

[image: *] The investment professionals at Everbright Private Equity
adhere to a simple best effective investment philosophy:

[image: *] Partner with proven management teams motivated by equity
ownership in their businesses

[image: *] Invest in profitable companies with highly defensible
market positions in stable or growing industries

[image: *] Prudently capitalize investments

[image: *] Work diligently with management to be a value-added
financial partner


Following this model, the Everbright Private Equity Fund seeks above-market
returns on capital, with investments in businesses which we believe carry
below average levels of business risk.


We seek to invest in companies with reasonable net profits and revenues.
Transaction structures are flexible and are based on individual business
circumstances.


Our investments are structured to include a meaningful equity position for
participating in the ongoing management of these companies.


*Venture Captial Fund *

In 2007 Everbright set up a RMB 200 million venture capital fund* in Beijing
with the Zhongguancun Venture Capital Development Centre. The fund invests
in unlisted hi-tech and high-growth SME's in such industries as technology,
media, telecommunications (TMT), environmental protection, energy saving and
emission reduction, new energies, consumer industries, and cultural and
service industries. Main methods for the fund's exit are GEM and SME
markets.


Everbright's subsidiary**, as the manager of the fund, is entrusted to
manage the venture capital fund and provide management consultancy services
to enterprises the fund invests in. It will also participate in establishing
and managing other industries and venture capital funds. At present, the
company manages Everbright's new industrial venture capital fund.


*CEL Venture Captital (Shenzhen) Limited *

CEL Venture Capital (Shenzhen) Limited is a wholly foreign owned enterprise
funded by Everbright and was incorporated in Shenzhen, Guangdong Province,
China in April 2001. The registered capital of the company is HK$100
million.


The company and its subsidiaries seek enterprises with adequate business
scale and profitability, rapid growth potential and excellent core
competencies in high-tech and other technologically innovative industries to
invest in. The Company is also entrusted to manage and operate the venture
capital, provide an investment consulting business for other venture capital
companies, and directly invest or participate in building business
incubators.


*2. Asset management*

*Dragon Fund *

Managed by Everbright Asset Management, the Everbright Dragon Fund benefits
from a team of investment professionals with substantial experience in
investing in Mainland China, Taiwan and Hong Kong. Hong Kong SFC Registered
Investment Adviser. Target clients include Fund of Funds, Family Offices,
Institutions and High-Net Worth Individuals.


Everbright Dragon Fund is a hedge fund that seeks to maximize the risk
adjusted total returns through investments in Asian ex Japan equities. It
employs a strategy of the fundamentally-driven long/short stock selection
with a global macro overlay. The investments are based on a set of rigorous
fundamental research conducted by the Manager and its staff. The Fund's
principal investment focus is Asia ex Japan with a Greater China focus. The
Fund may invest in and actively manage a diversified portfolio of securities
including equities, bonds, currencies, fixed income and other investments in
developed and emerging markets, both for hedging purposes (to minimize risk)
and for independent profit opportunities. At all times, the Fund will
attempt to apply a rigorous set of risk management techniques in an effort
to preserve the capital of the Fund and to enhance risk-adjusted returns.


*3. Asset investment*

*Asset Investment Management *

Everbright, through its subsidiary, is engaged in industrial investment with
medium to long-term value appreciation potentials. Further, it operates
specified investment funds which offer its clients investment opportunities
that generate continuous long-term growth. China Everbright Industrial
Investment Holdings Limited is also responsible for supervising asset
investment projects of Everbright's subsidiary companies and cooperation
platforms in Mainland China.


*Real Estate Investment Management *

Everbright ALAM is the exclusive real estate investment arm of China
Everbright Limited, focusing on real estate investment opportunities in
China with current AUM over USD 150 million.

Everbright ALAM launched its first Fund: Everbright ALAM China Real Estate
Fund seeking opportunistic returns through investing in China's real estate
market.

Everbright ALAM has completed its initial closing of the fund in November
2009. The final closing of the fund is targeted to close in mid 2010 between
USD 250-300mm.


Investment strategy:

[image: *] Capitalizing on China Everbright Group's nationwide
network on deal sourcing

[image: *] Providing alternative liquidity for cash-strapped
developers

[image: *] Structured financing for delayed IPO and Private
Placement

[image: *] Partnership in development of special planning zones

[image: *] Special opportunities in hard assets acquisition


*Aerospace Financing and Investment *

Through its subsidiary*, Everbright is focused on the exceptional financing
and investment opportunities emerging from China's fast growing aerospace
and commercial aviation sector. We originate, structure and arrange funding
for well-defined, high-value aerospace assets in China such as aircraft,
aero-engines, flight simulators, and related capital equipment. Our services
also extend to manufacturing companies, maintenance, repair and overhauls
(MRO's) and new technologies. We manage the commensurate risk and arrange
financing at competitive rates.


Everbright has long realized that Mainland China will experience explosive
growth in all areas of the region's economy, especially aerospace. Our
professionals have substantial in-depth experience in aviation leasing,
finance, investment and banking. Working closely with aerospace clients,
investors and lenders, we build, structure and distribute investment
products in accordance with their risk requirements and return expectations.
Our asset-based investment products are developed for institutional and
sophisticated clients seeking stable, long-term returns. It is also an
attractive means for investors to participate in the rapid development and
expansion of China's aerospace industry sector.


As an industry-specific aerospace investment and asset management firm, we
take a far-sighted view of this exciting and unique emerging marketplace.


*4. Investment banking*

*Corporate Finance *

Everbright, through its licensed subsidiaries, is licensed to conduct Type
1, Type 4 and Type 6 regulated activities under the Securities and Futures
Ordinance of Hong Kong. It also acts as an acceptable financial advisor and
listing sponsor for the Main Board and GEM Board of the Stock Exchange of
Hong Kong. Everbright Investment Banking assists its clients in primary and
secondary market financing, and provides financial advisory services for
restructuring, merger and acquisition.


Everbright's investment banking business is made up of three main areas,
namely:


Corporate Finance and Equity Capital Markets

Institutional Sales


Leveraging on the substantial financial strength and background of
Everbright, the Corporate Finance and Equity Capital Markets businesses have
gained considerable recognition in the mainland and Hong Kong by sponsoring
numerous stock listings in Hong Kong and completing a number of financial
advisory projects. Everbright provides one-stop cross-border corporate
finance services. Its high-calibre professional team is well-versed in
Chinese corporate culture, with an substantial knowledge of financial
business regulations in Hong Kong and the mainland, and rich experience in
the listing of state-owned(H-shares) and private enterprises(Red chips).
These enable our team to provide clients with unique insights and innovative
solutions. Our Corporate Finance sector have set up representative offices
in Beijing, Shanghai and Shenzhen, where our team can provide professional
services to quality enterprises in the mainland.


Corporate financing advisory services include:

*Fund Raising Services *

*Financial Advisory Services *

*Before listing*

· Direct investment

· Issuance of convertible bond

· Corporate and debt restructuring

· Mergers & acquisitions

· Independent financial advisory investment

· Investment advisory

· Discloseable transaction

*Listing through offering*

· IPO execution

· IPO underwriting and placing

*After listing*

· Rights issue and their placement

· Issuance of convertible bonds

· Issuance of warrants


*Institutional Sales *

Everbright Institutional Sales' main clients are traditional funds, hedge
funds and private equities, as well as clients based in Beijing, Shanghai
and Shenzhen. Its services range from securities and derivatives trading to
secondary market placing and international placing for IPO, as well as
financing for stock trading and placement. Clients may place orders through
Everbright's trading platform, Bloomberg and eb165.com.


*Corporate Sales *

Everbright Corporate Sales team provides a full range of services to help
clients execute their investment plans and achieve their goals. Our client
base comes mainly from Mainland China, Hong Kong, Taiwan, Singapore and
Malaysia. We serve the wealth management needs of both listed and non-listed
corporations and high net worth clients. Other than traditional services
like equity, futures, fund and derivatives trading, we offer more prominent
services including:


[image: *] Bridging loan to finance our clients' specific investment
targets

[image: *] Asset management service and advice relating to Hong Kong
Government sponsored immigration plan

[image: *] Advice on offshore assets management and assistance in
seeking separate listing status in Hong Kong

*5. Brokerage & Wealth management*

*Brokerage *

*(1) Securities *

Through its licensed subsidiary* China Everbright Securities (HK) Limited,
Everbright provides individual and institutional clients with comprehensive
and diversified investment services, specifically:


[image: *] Securities brokerage

[image: *] Securities margin financing

[image: *] Online transactions

[image: *] Agency and custodian services

[image: *] Market research and analysis


*(2) Forex *

Everbright provides leveraged foreign exchange trading services via its
licensed subsidiary, with margin investment accounts available at Everbright
Forex for those who wish to profit from foreign currency exchange
fluctuations.


*(3) Futures *

Through its licensed subsidiary *, Everbright provides various types of
commodity futures trading for investors to trade according to their own
needs. Commodity futures contracts are traded on margin, which is usually
between five and fifteen percent of the total contract value. Both parties
of the trade must pay the margin in order to ensure fulfillment of contract
obligations in the future.


Everbright Futures provides clients with a diverse range of products and
services, meeting their clients' different investment needs. Our products
include:


[image: *] Hang Seng Index Futures & Options

[image: *] Mini-Hang Seng Index Futures

[image: *] H-shares Index Futures & Options

[image: *] Mini H-shares Index Futures

[image: *] International Stock Futures & Options


In addition to professional services for the local futures market, we also
act as an agency of overseas financial institutions, offering overseas
futures & options trading services including derivatives of the Chicago
Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York
Mercantile Exchange (NYMEX) and London Metal Exchange (LME).


*(4) Bullion *

Everbright provides institutional and individual investors with precious
metals trading services through its licensed subsidiary Professional brokers
and customer service officers at Everbright Bullion can provide you with the
latest information and trend analysis of the gold market as well as serve
you round the clock to keep you up to date on market movements.


*Wealth Management *

Everbright, through its licensed subsidiaries, provides its clients with
one-stop wealth management services covering financial planning, investment,
insurance and brokerage services in a diversified portfolio of financial
products including mutual funds, local and overseas securities,
investment-linked insurance products and term life insurance.


The advisors of Everbright Wealth Management close to the financial markets
and thoroughly understand clients' financial needs, investment goals and
risk profiles. Committed to enabling its clients to achieve their life goals
through the appreciation of their asset value, Everbright offers tailored
financial and investment portfolios to its clients through pursuing its
philosophy of “Making Wealth Simple”.


--
Michael Lin
Co-founder & CEO
Thornton Group LLC
Room 705, SK Tower, No. 6 Jia,
JianGuoMenWai Avenue,
ChaoYang District, Beijing 100022
Tel: +86 10 6563 0288
Fax: +86 10 6563 0519
Email: mlin@thorntonai.com
Website: www.thorntonai.com

林俊良
桑顿集团 首席执行官
北京市朝阳区建国门外大街
甲6号SK大厦705室
电话: +86 10 6563 0288
传真: +86 10 6563 0519
邮箱: mlin@thorntonai.com
网址: www.thorntonai.com


--
Michael R. Leonard
Analyst, Operations Department
Thornton Group LLC
14 Beacon Street, Suite 804A
Boston, MA 02108
Office: 617-248-9440
Mobile: 781-454-9227