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Minority Stake Buyout of Abax Global- Chris Hsu and Morgan Stanley

In the Hong Kong-based hedge fund startup Abax Global Capital of Hong Kong, Chris Hsu, also CEO of Kilometre Capital and Morgan Stanley decided to buy a minority stake in its much noticed and discussed buying spree. Chris Hsu, who was formerly employed as Managing Director and Head of Special Situations Asia at the giant Chicago-based Citadel Investment Group, was one of the key founders and CEO of Abax Capital and Kilometre Capital, the hedge funds.

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Minority Stake Buyout of Abax Global- Chris Hsu and Morgan Stanley

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  1. Minority Stake Buyout of Abax Global- Chris Hsu and Morgan Stanley https://sites.google.com/view/chris-hsu-kilometre-capital/

  2. In the Hong Kong-based hedge fund startup Abax Global Capital of Hong Kong, Chris Hsu, also CEO of Kilometre Capital and Morgan Stanley decided to buy a minority stake in its much noticed and discussed buying spree. Chris Hsu, who was formerly employed as Managing Director and Head of Special Situations Asia at the giant Chicago-based Citadel Investment Group, was one of the key founders and CEO of Abax Capital and Kilometre Capital, the hedge funds. Christopher Hsu was the key man behind the Morgan Stanley minority stake buyout deal and is also formerly known as the youngest business head in the history of Citadel Investment Group.

  3. Reuters, Wall Street Journal, Finance Asia, the Financial Times, Bloomberg, and other news sources rushed to report on the huge precedent: Morgan Stanley’s first minority equity purchase in an Asian-based hedge fund through Chris Hsu’s Hong-Kong headquartered Abax Global, later Kilometer Capital of Chris Hsu, who left Citadel in late 2006, has wooed Morgan Stanley’s investment-management arm to participate as a minority investor in his new hedge fund asset management company, Abax Global Capital Limited. Neither the percentage size of the stake purchased nor the price paid was able to be disclosed by a spokesperson of Morgan Stanley.

  4. The fund management division signed an agreement to take a “significant” minority stake in Chris Hsu’s Abax Global Capital, a new hedge-fund advisor formed to invest in Asia in New York, as per Morgan Stanley. The founders of Abax include Chris Hsu and other former employees of Chicago-based hedge fund giant Citadel Investment Group LLC, which manages more than $13.4 billion. The fund Abax was the hedge fund brainchild of Hong Kong Chris Hsu, a former Business Head and Managing Director at Chicago-based hedge fund Citadel Investment Group, with responsibility for that firm’s multi-billion dollar Special Situations Asia Group; Donald Yang, formerly managing director and head of Hong Kong and Greater China debt capital markets at Merrill Lynch & Co. Inc.; and Frank Qian who was formerly a trader and risk manager in Asia, Europe and the U.S. at Citadel Group.

  5. According to The Financial Times, Abax Global will expectedly be the first independent Asian hedge fund startup that will begin its journey with over $1 billion in assets. The entire credit goes to the superior negotiation and closing skills of Chris Hsu, who is popular for his knowledge, skills, and experience in financial advisory. The hedge fund is now all set to invest in private and public-sector issuers in Asia, with the primary focus being on Greater China, including Korea, Taiwan, and Hong Kong. The transaction follows Morgan Stanley’s December purchase of hedge fund Brookville Capital Management. Before, Morgan Stanley purchased minority stakes in other hedge funds, including London-based Lansdowne Partners, which followed the October 30 purchase of a minority stake in New York-based Avenue Capital Management. Sandwiched between those two dates, MSIM acquired Greenwich, Conn.-based Front Point Partners LLC, a multi-strategy hedge fund business.

  6. Morgan Stanley said the deal adds Chris Hsu’s Abax to the stable of independent investment managers with whom its fund arm collaborates, which includes Avenue Capital, Lansdowne Partners, and Trax is Partners. As per Morgan Stanley, Asia Chief Executive Hans Schuettler, they are expanding the range of investment strategies we offer to both our institutional and our high net worth individual clients. “In a highly attractive and distinctive asset category, the clients will be provided access to investment expertise through this new alliance with Abax.”

  7. Morgan Stanley Investment Management has $478 billion in assets under management or supervision as of November 30, 2006, and over 400 investment professionals around the world, together with its investment advisory affiliates. Investment management services are offered by these entities to a diverse client base, including governments, institutions, corporations and individuals. Morgan Stanley Investment Group recently bought a minority stake in Abax Global Capital Ltd., a well-known hedge fund startup founded by Chris Hsu, the CEO and founder of Abax.

  8. ThankYou

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