Shares of New Silkroutes Group (NSG) fell yesterday after the firm said it had backed out of a plan to develop private equity funds with three other parties.

The move came less than a year after the joint venture was formed.

The announcement sent NSG's stock down 2.5 cents or 5.56 per cent to 42.5 cents on turnover of 467 million shares.

New Silkroutes Asset Management, headed by former senior UOB banker Terence Ong Sea Eng, was formed last Oct 7; Mr Ong, Nanshan Group Singapore and NSG each had a one-third stake. Fuji Capital owned 10 per cent.

NSG transferred its entire 28.41 per cent stake to Mr Ong yesterday for $805,000 in cash.

A spokesman for NSG told The Straits Times that the firm had decided it was "best to part ways completely" because "certain expectations had not been met" by the stakeholders in the venture.

He declined to give details, but said the separation was "amicable".

New Silkroutes Asset Management was formed to develop private equity funds focused on healthcare and infrastructure in the Asia-Pacific region.

In the three months to June 30, NSG's share of losses relating to New Silkroutes Asset Management was US$172,000 (S$232,300).

Overall, NSG made a net loss of US$1 million in the last quarter, with most of its revenue coming from oil and gas trading arm International Energy Group.

NSG was known as Digiland International before. It has gone through a makeover since Dr Goh Jin Hian became chief executive in 2015. Its businesses now span energy trading, healthcare and real estate.

New Silkroutes Asset Management was part of NSG's fund management arm. The spokesman added: "Despite the latest development, NSG is committed to investing resources to build up New Silkroutes Capital (its wholly owned financial investment arm) to focus on wealth management, investment banking, brokerage, private equity and venture capital."