Primus Financial shuts down fund

Primus was set up by Robert Morse, Wing-Fai Ng and Guocang Huan in 2009. News of the closure comes as GCS Capital, another Hong Kong-based private equity firm run by Huan is engaged in exclusive talks to buy Dexia's asset management arm.

Huan left his position as a non-executive director at New China Life in March, citing a change in his work arrangements.

According to Reuters, Morse and Huan have left the Primus, selling assets and returning capital to investors. The partners launched their fund in 2005, targeting up to $1 billion, but ended up with a final close of $352 million. Speaking to AVCJ last year, Morse said Primus' LPs are predominantly family offices representing high net worth individuals.

Morse is now heading the investment management committee at US real estate investment fund ROC Bridge Partners, while Ng has raised new capital, Reuters added.

Primus acquired a 4.5% stake in New China Life in 2006 from Meiji Life Insurance, paying RMB162 million (then $21 million). It sold the interest to Standard Chartered Private Equity and Temasek Holdings in 2010 for RMB1.58 billion. Other investments included minority interests in EON Capital - exited last year as Hong Leong Bank acquired the company, despite Primus' attempts to prevent the sale - and OP Financial Investments.

The private equity firm, working in partnership with a company called China Strategic Holdings, agreed to buy Nan Shan from AIG for $2.2 billion, but Taiwan regulators blocked the deal, saying the consortium lacked insurance industry experience and the ability to raise capital for future operations. There were also suspicions that mainland Chinese investors were involved in the bid.

When he spoke to AVCJ, Morse identified his key areas of interest as insurance - driven by the growing middle classes and lack of a social safety net in certain Asian countries - asset management and the broker-dealer space. He also expressed concern at the level of competition for deals.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• GPs
• Financials
• Greater China
• Southeast Asia
• Primus Pacific Partners
• Financial Services
• PIPE
• Growth capital
• Asia