China-based Suzhou Industrial Park Kaida Venture Capital has invested in US advisory and consulting firm VTL Associates.
The growth capital will be used to support the expansion of RevenueShares, a division of VTL that provides revenue-weighted exchanged-traded funds (ETFs).
RevenueShares said it plans to “aggressively develop” a global family of funds utilising VTL’s methodology of weighting known indexes by top-line company revenue rather than market capitalisation. In addition to new products, the company said it will expand its staff and marketing efforts for the firm’s six existing ETF products.
“VTL Associates is a dynamic company led by an insightful team leader, Mr. Vincent Lowry. With a variety of ETF products in the market, VTL has demonstrated the ability to create something exciting that potentially increases the asset value of investors,” said Yulong Wang, chairman of Suzhou Industrial Park Kaida Venture Capital.
“Revenue-weighted ETFs are an effective way to reduce potential investor loss to the lowest level during economic downturns, and yet capture market gains in a flourishing economy. I trust VTL’s management team and its revenue-weighted ETF products and look forward to making an impact on the ETF market globally.”
Launched in 2008, RevenueShares is the only ETF sponsor that uses top-line company revenue as the sole means of weighting S&P indexes.
Suzhou Industrial Park Kaida Venture Capital is a Dalian-based private equity firm specialising in the high-tech and financial sector. Since 2012, the firm has been re-shaping its strategy to emphasise focus on US companies, Wang said.
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