China’s Kaida VC invests in VTL Associates
China’s Suzhou Industrial Park Kaida Venture Capital has invested in VTL Associates, a Philadelphia-based financial consulting firm that develops equity and fixed income indexes.
According to local media, the Chinese private equity firm has committed $7 million for a 22% stakes in VTL.
The company intends to use the capital to expand of RevenueShares, a division that provides revenue-weighted exchanged-traded funds (ETFs), to boost the staff and marketing efforts for its six existing ETF products, according to a statement. It also plans to develop a global family of funds utilizing VTL's methodology of weighting known indexes by top-line company revenue rather than market capitalization.
"Revenue-weighted ETFs are an effective way to reduce potential investor loss to the lowest level during economic downturns, and yet capture market gains in a flourishing economy. I trust VTL's management team and its revenue-weighted ETF products and look forward to making an impact on the ETF market globally," said Wang Yulong, chairman of Kaida.
Kaida specializes in funding high-tech and financial companies across China. Since 2012, it has been re-shaping its strategy to focus on US companies.
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