Toronto-based alternative asset manager Sprott Inc. (TSX: SII) said Thursday it has entered into a joint venture agreement with CITICPE HongKong Mgt. Co. Ltd. (CITICPE HK) to set up an offshore global resource fund.
“We are very pleased to be launching this fund with CITICPE HK, one of China’s leading alternative asset managers and we look forward to working together to establish an industry-leading global resource fund,” said Peter Grosskopf, CEO of Sprott.
The partnership will “leverage Sprott’s unique resource investment platform and CITICPE HK’s investment expertise and in-depth knowledge in Asian markets,” he said.
The fund will focus primarily on investment opportunities in equities and debt instruments of global resource companies and will be co-managed by affiliates of Sprott and CITICPE HK.
The management team of CITICPE HK was the founder of the first American Dollar dominated fund in mainland China. CITICPE HK is managed by fund management professionals from CITIC Group. CITIC Group is one of China’s largest financial institutions and a Fortune Global 500 company.
The launch of the fund is conditional on Sprott receiving the necessary regulatory approvals in Canada and CITICPE HK receiving the relevant regulatory approvals in the People’s Republic of China.