Zhongzhi Capital

Zhongzhi Capital (abbreviated as ZZ Capital) was founded in 2011 with registered capital of RMB 1bn, it is a multi-asset class focused asset management company which is headquartered in Beijing. It is one of the few institutions that have access to large amount of capital from a variety of funding sources, has the capability to work with companies at their highest strategic level, help them expand through acquisitions both domestically and internationally, transform their business through moving into new sectors, and facilitate industry consolidation. It is registered with the Asset Management Association of China.

Since its founding, ZZ Capital has focused on industry consolidation and investment of industry leading enterprises and listed companies, in the form of private equity investments, private placement, overseas acquisitions, management of M&A funds, as well as provision of M&A and strategic consulting services. It focuses on media and entertainment, internet and related services, high-end manufacturing, healthcare, financial services, information technology and logistics.

ZZ Capital utilise resources from a wide range of financial institutions, providing flexible financial solutions to clients. It has established strategic partnership relations with more than 30 companies, and owned a Hong Kong listed platform - ZZ Capital International.

ZZ Capital International is listed in Hong Kong Stock Exchange, and licenses for futures trading and asset management. September 7, 2016, ZZ Capital International had officially changed its name from "Asian Capital" to "ZZ Capital International”, with its Hong Kong Stock Exchange stock code (08295) unchanged. ZZ Capital will start its own asset management business, and assist ZZ Capital International to establish sustainable business eco-system. Besides the investment cycle of financing, investing, management and exiting, ZZ Capital International will leverage ZZ Capital's wide coverage in the United States, United Kingdom, Germany, Japan, Israel and other countries and regions, and to carry out business around the world.

According to China Venture Capital & Private Equity Annual Ranking 2015, it is the 18th largest domestic private equity firm.^[1]

Zhongzhi Capital is one of 73 private funds, including Sequoia Capital Equity Investment Management (Tianjin) Co. Limited, that are currently being investigated by the China Securities Regulatory Commission (CSRC) for multiple offences,^[2] and violations raised by the CSRC against Zhongzhi Capital Include:^[3]

- No risk assessment was performed on Zhongzhi’s private funds that were established after 21 August 2014, specifically; they do not meet the "Interim Measures for supervision and management of private investment funds" provisions of Article XVII.

- Zhongzhi’s legal representative Duan Di, senior management personnel Zhang Yun and Qiu Xiaoyun, have not received the qualifications necessary to manage funds, specifically, their practice qualification does not meet the "Securities Investment Fund Law" provisions of Article IX

Ownership

Zhongzhi Capital is owned by Zhonghai Shengrong (Beijing) Capital Management Limited Company and as Beijing zhonghai Jurong Investment Management Limited Company as to 95% and 5% respectively.^[4] The ultimate parent company of Zhong Hai Sheng Rong is Zhonghai Sheng Feng (Beijing) Capital Management Limited Company.^[4]

Transactions

• In September 2015, Zhongzhi Capital and China Profit Investments Limited sold Huazhong Financing and Leasing Co Ltd to Jiangsu Fasten Co Ltd in for US$332 million^[5]

References