The Guangdong provincial government will hold an equal stake in the venture
A Hong Kong finance house controlled by a former Goldman Sachs partner has teamed up with the Guangdong provincial government to launch the mainland's newest asset management company.
Fan Ya Tai Asset Management will focus on non-performing loans and property assets in southern China.
The joint-venture firm will be held equally by GDH, which is an investment arm of the Guangdong provincial government, and Hong Kong's AMRI Financial Group, controlled by Steven Shafran, a former Goldman partner.
Mr Shafran played a leading advisory role in the US$5.59 billion debt restructuring of Guangdong Enterprises (Holdings) (GDE), GDH's predecessor, in 2000. He will be vice-chairman of the new firm.
The venture will use GDH's connections and Mr Shafran's financial expertise team to recover non-performing loans and rehabilitate stranded property assets, according to Fan Ya Tai chairman Wu Jiesi, who also heads GDH.
Mr Wu said the firm had been approached by international investment banks with a view to taking an equity stake.
