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8295 - ZZ Capital International News Story

HK$0.6 -0.0  -1.6%

Last Trade - 21/02/20

Sector
Financials
Size
Small Cap
Market Cap £212.6m
Enterprise Value £148.2m
Revenue £1.01m
Position in Universe 1807th / 5984

UPDATE 1-Private equity fund buys index maker Alerian as ZZ Capital deal stalls

Wed 23rd May, 2018 4:15pm
(Adds detail and context)
    By Kane Wu
    HONG KONG, May 23 (Reuters) - Aretex Capital Partners, a
private equity fund that was launched just this year, has agreed
to buy Alerian, the developer of the energy benchmark Alerian
MLP Index  .AMZ , Aretex said in a statement late on Tuesday. 
    Aretex was founded by two executives at ZZ Capital
International Ltd  8295.HK , whose current deal to purchase
Alerian has stalled since last July. 
    Alerian's MLP Index tracks energy companies which have
structured themselves as master limited partnerships, publicly
traded partnerships whose profits are taxed only when investors
receive their distribution. The company is based in Dallas.
    The deal would be the first investment by Aretex, an
investment fund founded by Sergio D’Angelo and Andrew Feller.
D'Angelo is currently the head of Europe for ZZ Capital
International while Feller is the head of North America,
according to their LinkedIn profiles. 
    Terms of the purchase were not disclosed. 
    ZZ Capital's investments included stakes in two other
companies, Building Energy 1 Holdings, a renewable energy
company, and Surgical Specialities Corp, which makes medical
supplies and sutures. 
    Aretex raised capital for the deal through two financial
sponsors, according to a person familiar with the matter. With
the purchase, ZZ Capital will focus on investments in China, the
person said.  
    D'Angelo declined to comment on Aretex, its sponsors or its
interest in other ZZ Capital holdings in a telephone interview.
Feller did not immediately respond to a request for comment.  
    Hong Kong-based ZZ Capital agreed last July to buy Alerian,
a financial index and data provider, for $582 million in cash
and up to $230 million in additional payments if it hit revenue
targets from 2018 to 2021.  urn:newsml:reuters.com:*:nL4N1K54G5
    The firm had been attempting to restructure the deal after
missing two deadlines to close the transaction.  urn:newsml:reuters.com:*:nL1N1R90O6
    Alerian Chief Executive Kenny Feng was unavailable and a 
spokeswoman for the company declined to comment on the deal's
terms.
    China's clampdown last year on bank lending for overseas
investments has required ZZ Capital to seek offshore funding for
its existing deal pipeline and to slow new mergers and
acquisition proposals, it said in a regulatory filing in
February.
    A U.S.-based spokesman for Aretex was unavailable for
immediate comment. 

 (Reporting by Kane Wu, additional reporting by Gary McWilliams;
Editing by Christian Schmollinger and Jonathan Oatis)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))
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