A U.S. private equity takeover has sparked an exodus at the second-oldest China foreign fund joint venture, according to a report.
Last week, New York-based private equity giant Warburg Pincus said it would acquire 49 percent of Fortune SG Fund Management, a 14-year-old fund house, from French bank Societe Generale.
As a result, Fortune SG's long-standing chairman and its investment head, Zheng Anguo and Ren Zhiqiang, respectively, are leaving the Shanghai-based fund, «Asia Asset Management» reported on Monday, citing sources – and more are set to follow.
«Not Super Stable»
Fortune SG's executive vice-president and another executive key to building its segregated business are on their way out, the publication reported.
«Overall, (it’s) more than half of the senior management. I would not say it is super stable,» the outlet quoted one insider saying.
A spokesman for Fortune SG described the reported exits as «groundless,» saying the firm's management team is «stable».
Defecting for Rival
Ren is set to become head of HFT Investment Management, a key rival and a joint venture of BNP Paribas and Haitong Securities, while Zheng is reportedly striking out on his own.
The duo left after Paris-based SocGen sold to Warburg Pincus without consulting Shanghai.
The person quoted by «Asia Asset Management» said the U.S. private equity house would ultimately simply be buying «a platform» due to the rapid rate of executive departures following the stake sale.
