The family office of the third-richest family in Hong Kong, which also owns New World Development, is getting ready to start its first hedge fund in order to capitalize on market possibilities, particularly in China.
Adrian Cheng of New World Development launched the family office Avantua Group in 2019, and it is looking to raise $50 million for its new hedge fund. It intends to fund around one-fifth of the whole amount on its own, and it will begin investing in a long-short strategy after obtaining the remaining funds by the end of September.
Now, we can see a window. According to Edward Liu Chang, a chief investment officer of Avantua, "China is loosening up while the US is tightening regulations to preserve the virus-hit economy."
According to the managing director of the family office, Xu Hao, Avantua's "ultimate objective" is to establish a reputation and over time grow into one of the leading investment firms in China and Asia. In its initial two years of existence, Avantua focused on private markets and managed assets totaling US$2 billion.
''To do that, we must build a brand that will regularly result in long-term profits for our shareholders and investors. The secondary market is an excellent place to enter right now, says Xu.''
The third-generation head of Hong Kong developer New World Development, which was started by his late grandpa Cheung Yu-tung, is Avantua Chairman Cheng. With a net worth of more than $25 billion, the Cheng family is ranked third wealthiest in Hong Kong by Forbes.
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