By Ivan Anderzhanov
East Capital is diversifying from its Russian and Eastern Europe focus by acquiring Asia Growth Investors (AGI), a fund management company focussed on China.
AGI, which is Swedish owned like East Capital, was founded in 2004 by fund manager Gustav Rhenman.
East Capital, which managed about $6 billion, said AGI’s investment strategy is complementary to its own as they combine frequent travelling in the region with fundamental equity research as the basis for stock picking.
Peter Elam Håkansson, founder of East Capital, said in statement: “We believe the main growth in the world will come from Eastern Europe and China. Having two specialised investment teams under the same roof covering these two exciting parts of the emerging markets universe will be a very valuable additional offering to our investors.
Karine Hirn, one of East Capital’s founding partners, will relocate to Shanghai August 2010 in order to follow the developments in China.
East’s investment team will continue to focus on Eastern Europe while the China funds will be managed by the separate investment team of China specialists.
Completion of the deal is expected in June.
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