As Chinese conglomerates continue to move into international financial services, one of the largest private companies in China has taken a stake in a New York based Investment Bank.
The latest move follows the announcement last month that HNA, a private Chinese firm, had acquired 3 percent of Deutsche Bank.
CEFC China Energy Company (CEFC), has entered into an agreement to acquire 19.9 percent of common equity interest in New York based Cowen for $18.00 per share, CEFC China has also agreed to provide $175 million in new debt financing to Cowen.
A Rapid Rise
CEFC which counts energy, finance and international banking as its main business activities, has emerged from relative obscurity as a niche fuel trader to become a rapidly growing oil and finance conglomerate with assets across the world.
The company owns multiple financial platforms of bank, security and asset management and has a controlling stake in the Czech J&T Finance Group which has banks operating in the Czech Republic, Russia, Croatia, Barbados and Euro zone member Slovakia.
A Win Win Arrangement?
New York headquartered Cowen Group, is a diversified financial services firm which provides alternative asset management, investment banking, research, sales and trading and prime brokerage services
For CEFC this deal gets it ready-made access into the finance market in the U.S. For Cowen, the deal brings a large shot of cash and debt financing and the potential of access to the Chinese market.
