Executive Summary
Pacific Alliance Asia Opportunity Fund Limited is a newly incorporated, closed-end Cayman Islands registered, exempted company incorporated to make and hold investments in undervalued companies and assets mainly in Greater China, as well as in other countries in Asia. The Company will invest and hold equity, debt and other interests in both listed and unlisted companies and assets where the Pacific Alliance Investment Management Limited (the \Investment Manager\) believes that investment can be made at a discount to realisable value. It is expected that 70 per cent. of initial investments will be related to Greater China, 20 per cent. to South East Asia and 10 per cent. to the rest of Asia. The geographic mix of investments within Asia may vary over time depending on the relative attractiveness of opportunities among countries and regions. No single investment may, at the time of investment, exceed 20 per cent. of the Company's gross asset value. The directors undertake to propose a resolution for the winding-up of the Company if no investments have been made within two years of admission. Should the annual increase in the Company's net asset value be less than the hurdle rate of eight per cent. for three consecutive years, the Board will convene a shareholders meeting where a resolution will be proposed on whether the Company should continue its operations or be wound up. In addition, shortly before the eighth anniversary of admission, the board will convene a shareholder's meeting at which a resolution will be proposed to continue the Company. The Company may acquire majority or minority stakes in investee companies. In the event that the Company holds a minority interest, the Investment Manager will seek to secure adequate minority protection rights, including but not limited to board participation, membership of supervisory, audit and oversight committees and specific veto rights over major decisions, through shareholders' agreements and other security or control mechanisms. The directors of the Company, the Investment Manager and an advisory panel, established to augment the expertise of the Investment Manager (the \Advisory Panel\) collectively have over 100 years of Asian investing experience and been involved in over $3 billion of investments. In particular, the directors, the Investment Manager and its management and the members of the Advisory Panel have considerable experience in Asia, specifically Greater China, covering areas such as managing operating businesses, private equity investing, real estate investing, asset management and corporate…
