Caixin
Jan 04, 2019 03:28 PM

Prosnav Capital:The ERA has come to serve the Global Market

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David Huang, Founder and Chairman of Prosnav Capital

In the winter of 2018, almost all Chinese investors sought to break through the so-called “capital winter”, including investors planning global multi-asset allocation. In response to all confusion surrounding capital “going overseas”, Prosnav Capital is integrating increasingly into global investment markets.

In June 2018, Prosnav Capital established cooperation with HQ Capital, a private investment group owned by the Harald Quandt Family, a century-old industrial behemoth of Germany. Prosnav Capital became HQ Capital’s exclusive strategic partner in China, and now Prosnav Capital is in the midst of acquiring the Luxembourg-based licensed company with a 40-year history. After the acquisition, Prosnav Capital will own 50% of its equity, increasing its overall assets to US $2.5 billion.

“The globalization of Prosnav Capital was based on our judgment of the market during the year 2015, as well as our core corporate values”, said David Huang, Prosnav Capital’s founder and chairman.

In 2015, after careful investigation and lengthy deliberation, the business team at Prosnav Capital determined that the cycle of China’s intensive capital expansion had come to an end, returns on investment would decline rapidly and the market would enter a phase of excess capital. The market is not lacks of investment capital, but is a quality target for underlying asset. This has resulted in a portion of Chinese capital enterprises, including Prosnav Capital, beginning to plan for overseas placement.

The question is: Is the global asset allocation of Chinese investors a long-term trend or a short-term behaviour? The answer could impact overseas investors, not only through the kinds of investment returns they could earn, but also who they would work with and the methods of cooperation. Prosnav Capital believes that the global asset allocation of Chinese capital is a long-term demand.

According to David Huang, “Chinese capital should be rooted in China, and to ‘go

overseas’ teaming up with an overseas partner with Chinese strategies is the ideal way to go.” This is why the partnership with HQ Capital was promoted.

HQ Capital specializes in investing in “invisible champion” companies in German-speaking Europe. It continues the Harald Quandt family’s tradition of advantageous long-term investments, as well as emphasizes the value that Chinese and Asian markets can offer to German companies. One-tenth of HQ Capital’s assets (about US $ 1.5 billion) were invested in China prior to the partnership. Yuanju and HQ Capital has jointly established a family wealth management company in Qingdao and a fund of funds, “The Sino-German Fund.” Chinese investors and enterprises benefit from the partnerships as they can make use of the valuable concepts the German family espouses, as well as the Quandt family’s investment philosophy, management and skills. Meanwhile, German manufacturers and investors can settle in Asia, develop the Asian market and share in the rewards of China's economic growth.

Sustainable cooperation and development are resulted of shared strategies, deep connections and stable relationships. Prosnav Capital regards top investment partners worldwide as “mentors,” on a constant path advancing towards the peak of investment potential. This is why Prosnav Capital began paying attention to Luxembourg, an important gateway for foreign investment in the EU, which is favoured by global financial institutions for its significant strategic location, well-established business law and regulatory system. Luxembourg is the largest wealth management and private banking center in Greater Europe, the second-largest investment funds center in the world, and an international distribution center for asset management companies worldwide. What’s more, the top ten global private equity firms all operate in Luxembourg, also a major center for alternative assets investment. Luxembourg has become the global hub for major international financial institutions seeking pan-European operations and the opportunity to expand their scope both within and outside of the EU. According to David Huang, “Our acquisition in Luxembourg, the gateway to the Eu, promotes the deep integration of Chinese capital within the market of Europe and the world. We aim to be regarded as a member of the world financial investment system on the highest level.”

As David Huang explained: “Every time we have made a choice and moved alongside the behemoths of investing, we have practiced long-term foresight, and these moments have become part of our corporate values going forward.” If you’re driven by a vision for the long-term -- 10 years or even more -- and your partners also believe in long-term values, then you are moving in the right direction. With hard work, you can continue following that upward trend.

Whether it’s the domestic or overseas market, and no matter the time, Prosnav Capital firmly believes that wealth is not gained overnight. By screening for the best investment resources for clients with an innovative and forward-looking vision, Prosnav Capital accumulates long-term wealth for clients that is forward looking and able to withstand the challenges of time.

According to David Huang, “the era has come for Chinese capital to serve the global market, Prosnav Capital has made great strides as a member of the era. As its Chinese name suggests, Prosnav Capital will set sail into the future, regardless of any hurdles we come across.”


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