BHR Partners

BHR Partners is a private investment fund founded in 2014 by Chinese and American partners to make investments outside of China.

History

BHR was founded in 2013[1] by Chinese asset managers Bohai Industrial Investment Fund Management Co. and Harvest Fund Management Co. and U.S. investment and advisory firms Rosemont Seneca Partners and Thornton Group LLC.[2] The company website in 2016 reported that Bohai Capital managed the RMB20 Billion and Harvest ranks among China's largest mutual fund management companies. The website said the company "also enjoy the support of Bank of China, China Development Bank Capital, and other major Chinese financial institutions.[1]

The firm set out in 2014 to raise $1.5 billion for investments, some in dollars and some in yuan. The yuan investments were to be converted to U.S. dollars through Shanghai Free-Trade Zone, facilitating offshore investment for Chinese investors. Rosemont Seneca is a Washington, D.C.-based investment and advisory firm run by Hunter Biden, the son of U.S. Vice President Joe Biden. Thornton Group is a Boston-based cross-border investment advisory firm. The U.S. partners as a pair and the two Chinese partners each own a 30% stake in the joint management firm.[2]

Transactions

  • 2014 - Approximately RMB4 billion in the Chinese pilot State-Owned Enterprises reform deal "involving the segregation and capitalization of Sinopec Group’s non-oil business into Sinopec Marketing Corporation";
  • 2015 - Henniges Automotive[3] with strategic partner, AVIC Auto; total transaction valued at around US$600 million;
  • - Investments in China General Nuclear, 3Bio Inc., and Didi Taxi.[4]
  • In November, 2016, BHR agreed to purchase Lundin Mining Corp's minority stake in African copper mine Tenke Fungurume Mining S.A. for $1.14 billion in cash. Lundin held a 30% interest in TF Holdings, a holding company, and an effective 24% stake in the mining operation. Freeport-McMoRan Inc. currently owns the remaining 70% stake in TF Holdings (an effective 56% of the mine), but is in the process of selling its stake to China Molybdenum Co. for a reported $2.65 billion. The Democratic Republic of the Congo, where the Tenke mine is located, owns the remaining 20% of the mine.[5]

References

  1. 1 2 "About Us", company webpage. Retrieved 2016-11-16.
  2. 1 2 Deng, Chao, "Bohai, Harvest and U.S. Investment Firms Expand Target for Outbound Fund" (possibly subscription only), Wall Street Journal, July 10, 2014. Retrieved 2016-11-16.
  3. ↑ "Henniges Automotive is back". The Gazette. April 25, 2010. Retrieved 4 September 2017.
  4. ↑ "Funds", company webpage. Retrieved 2016-11-16.
  5. ↑ McKinnon, Judy, "Lundin Mining to Sell Stake in African Mine for $1.14 Billion" (possibly subscription only), Wall Street Journal, November 15, 2016. Retrieved 2016-11-15.
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