Sun Hung Kai & Co. announced a partnership and seed commitment of $150 million with East Point Asset Management, a hedge fund boutique the Hong Kong-based conglomerate's money management platform incubated and spun out at the end of 2020.
Lindsay Wright, CEO of SHK Fund Management, in an interview Monday said SHK has a revenue-sharing agreement with the new firm, which is led by Simon Walsh, CEO and chief investment officer.
Ms. Wright, who joined SHK in mid-2020 to build out the firm's money management business, said the revenue sharing arrangement, in lieu of an equity stake, reflects her team's belief "in the need for independence" for the boutiques SHK helps launch. She declined to provide specifics on SHK's revenue share with East Point.
SHK's investment management business has roughly HK$14 billion ($1.8 billion) in assets under management in real assets, private equity and hedge funds, she said.
SHK also makes investments in external managers. The firm is looking to build additional revenue streams by broadening its portfolio of strategies and products, leveraging SHK's operating platform, including corporate services and distribution, she said.