Mandarin Capital exits Dagong Europe to Chinese JV partner
Mandarin Capital Partners has sold its 40% stake in a European credit ratings agency to joint venture partner Dagong Global Credit Rating. China-based Dagong is now the sole owner of the asset.
Dagong Europe Credit Rating was established in Milan in 2012 and won approval from the European Securities & Markets Authority (ESMA) the following year. The aim was to give Dagong an international footprint and offer an alternative to the big three credit ratings agencies, Moody's, Standard & Poor's and Fitch.
The European unit provides credit opinions on financial institutions including insurance companies and non-financial corporates, producing procedures, criteria and models that are the foundations of the credit rating process.
Ulrich Bierbaum, general manager of Dagong Europe, said the new ownership structure would support future growth of the business by fully leveraging the Dagong brand. Jianzhong Guan, chairman of Dagong Global and Dagong Europe, added that the strategy remains to drive investment between China and Europe and provide information to Chinese investors on credit risk.
"We believe that Dagong Europe has a significant potential to become a key player in the credit rating industry in Europe. The results obtained in the first year from the obtaining of the license from ESMA confirm such an expectation, in a sector that is bound to see important changes and reshuffles, following years of dominance of the three big US players," Lorenzo Stanca, managing partner at Mandarin Capital, said in a statement.
Mandarin Capital, a Sino-European private equity firm, reached a first close of EUR110.5 million ($138 million) on its second fund in September 2013. The vehicle has a revised target of EUR400 billion. It will invest in companies across the healthcare, environmental technology, oil and gas, and specialty chemicals sectors. There is a particular focus on helping international companies establish a foothold in China.
The PE firm has completed 10 investments in Chinese and Italian companies from in its EUR328 million debut fund, raised in 2007.
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