Sunwah Agrees To Buy RAB Funds, Eyes PCE Stake

Jun 28 2011 | 9:26am ET

Hong Kong’s Sunwah financial group plans to buy the Energy and Octane funds from troubled hedge fund manager RAB and may also pick up an 80% stake in the hedge fund platform PCE Investors.

Reuters reports that Sunwah International, backed by the Choi family, has agreed to buy the RAB funds, which have about $300 million in assets. RAB announced last week it would be de-listing in the wake of serious, post-crisis redemptions.

The group is also eyeing a majority stake in PCE, a platform providing infrastructure to startup hedge funds which has seen its assets fall from $1.6 billion in 2009 to $550 million.

"These transactions provide confirmation of Sunwah's business plan to become a leading global funds platform," Sunwah CEO Doug Betts said in a statement.

Reuters cites a source “familiar with the matter” as saying Sunwah has found an Asian-based asset manager to put $50 million in the Energy and Octane funds (to be renamed Sunwah Energy and Sunwah Octane) and to provide $200 million to replace money withdrawn by investors who choose to cash out.

The Sunwah Group is a large conglomerate that includes seafood, real estate and technology.

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