Established in December 2013 within the Shanghai Free Trade Zone, Bhr Partners stands as a pioneering cross-border investment private equity firm. As the dedicated cross-border investment arm of Bohai Industrial Investment Fund Management Co., Ltd. (“Bohai Capital”), BHR Partners leverages a robust network of sponsors and shareholders to facilitate global investment opportunities. Key sponsors include Harvest Fund Management Co., Ltd., Ulysses Diversified Inc., Skaneateles, LLC, and Thornton Group LLC, alongside a seasoned management team. The firm also benefits from the backing of prominent legacy shareholders through Bohai Capital, including Bank of China, China Development Bank Capital, National Council of Social Security Fund, China Life, and Postal Savings Bank of China. Ulysses Diversified and Skaneateles, both US-based diversified investment and advisory holding companies, further strengthen BHR Partners‘ global reach and expertise in real estate and private equity fund management.
Since its inception, BHR Partners has strategically launched several funds focusing on pivotal investment themes: State-Owned Enterprise (SOE) Reforms, Cross-Border Mergers & Acquisitions (M&A), and Alternative Growth Investments. This diversified approach positions BHR Partners as a versatile and adaptive investment leader in the evolving global market.
Cross-Border Mergers & Acquisitions Expertise at BHR Partners
As the designated cross-border investment platform for Bohai Industrial Investment Fund (“Bohai Capital”), BHR Partners is uniquely positioned to drive cross-border M&A activities. Supported by the Bank of China and other legacy shareholders via Bohai Capital, BHR Partners provides strategic partners with essential funding, extensive global resources, and the deep expertise of its seasoned cross-border team.
A notable example of BHR Partners‘ success in cross-border M&A is the acquisition of Henniges Automotive in September 2015. Henniges, a leading global manufacturer and designer of automotive sealing and anti-vibration solutions, became a BHR Partners portfolio company through a strategic joint venture with AVIC Auto. This significant acquisition, valued at approximately US$600 million, highlights BHR Partners‘ capability to execute complex and high-value cross-border deals.
BHR Partners and Strategic Investments in SOE Reform
Beyond cross-border investments, BHR Partners actively capitalizes on investment opportunities arising from the Chinese government’s initiatives to reform State-Owned Enterprises (SOEs). Recognizing the potential within these reforms, BHR Partners made a substantial investment of approximately RMB4 Billion in 2014. This investment was directed towards a pilot SOE reform deal involving the segregation and capitalization of Sinopec Group’s non-oil business into Sinopec Marketing Corporation, demonstrating BHR Partners‘ commitment to participating in significant domestic reforms.
Diversifying Investments with Alternative Growth Strategies
Understanding the dynamic nature of the market, BHR Partners strategically diversifies its investment portfolio to include alternative investment opportunities. In 2015, this included cornerstone and anchor investments in HKSE listings and limited public offerings such as China General Nuclear and 3Bio Inc. Furthermore, BHR Partners ventured into early to growth stage investments, including companies like Didi Taxi. This proactive approach ensures BHR Partners remains at the forefront of market trends while safeguarding investor interests through a well-diversified portfolio.
Key Investment Highlights of BHR Partners
BHR Partners has consistently demonstrated a strong investment track record across various sectors and deal types. Key investment highlights include:
- 2014: Approximately RMB4 billion invested in the Chinese pilot State-Owned Enterprises reform deal involving Sinopec Group’s non-oil business.
- 2015: Acquisition of Henniges Automotive in partnership with AVIC Auto, a transaction valued at around US$600 million. Further investments in prominent companies such as China General Nuclear, 3Bio Inc., and Didi Taxi.
- 2016: Agreement to purchase Lundin Mining Corp’s minority stake in the Tenke Fungurume Mining S.A. African copper mine for $1.14 billion in cash, showcasing BHR Partners‘ expanding global footprint and sector diversification.
BHR Partners continues to solidify its position as a leading cross-border investment firm, driving growth and creating value for its partners and portfolio companies through strategic investments and deep market expertise.
