New Silkroutes Group (NSG) is looking to acquire a majority stake in a Singapore-based investment firm, a move aimed at expanding further into the asset management business.
NSG's subsidiary, New Silkroutes Capital (NSC), will take a 51 per cent stake in Stamford Management, which oversees US$250 million (S$350 million) of funds, worth up to S$24.48 million.
NSG will pay for this through bonds issued to the shareholders of Stamford. NSC also has an option to buy the remaining 49 per cent of share capital for an amount capped at S$23.52 million.
Founded in 2001, Stamford Management serves accredited high-net worth individuals and institutions here and in the region. It focuses on investments in real estate, health sciences and natural resources, with a portfolio management team managing a collective investment fund and a wealth management team servicing private clients.
In addition to Stamford Management's base of clients in Asia, the partnership will manage funds with strategies customised for investors in the United States, Europe, the Middle East, North Africa and China. Said Dr Goh Jin Hian, group chief executive officer of NSG: "Through this acquisition, NSG will have a sizeable asset base and an experienced financial investment team. These factors will help us accelerate growth as we tap the management experience of our colleagues."
NSG's diversification into fund management is part of a strategic shift for the group, previously known as Digiland International, following its exit from the SGX Watchlist in November 2014.
Stamford Management will be renamed New Silkroutes Capital Partners after the acquisition, which is subject to approval of NSG's shareholders.
Mr Jason Wang, chief executive officer of Stamford Management, said the company is looking forward to working with NSC.
"The relationship with New Silkroutes Capital will bring Stamford Management to a new level of growth and product offering."
The acquisition of Stamford Management comes just weeks after NSG, through NSC, formed a joint venture with New York-based CG Capital Partners to offer fund management services to sophisticated investors and high net worth individuals in Asia.
The joint venture will invest in US dollar, euro and yuan-denominated structured products.