Italian-Chinese private equity operator Mandarin Capital Partners sold its 40& stake in Chinese rating agency Dagong Europe to Dagong Global Rating who controlled the remaining 60% of the company.
Mandaring invested in Dagong Europe in May 2012 but the relationship between the private equity fund and Dagong Global Rating had been rather tense in the last few months. Word is that the Chinese did not appreciate the change of approach adopted by Mandarin for its new fund. Actually the private euqity operator decided to focus just on European companies aiming to grow in China while original target of the fund were both Italian companies targeting China and Chinese companies targeting Italy.
The final closing of the fundraising is expected to be announced in the first quarter of 2015 at 400 million euros with a hard cap at 500 millions, rather lower than the one billion euros original target. The lower target was a conseguence of  the change in the fund’s investment approach.
Coming back to Dagong Europe, Alberto Forchielli and Lorenzo Stanca, cofounders of Mandarin, told MF-Milano FInanza  that “the investment’s return will be limited in the short term but an earn out is expected linked to Dangong Europe’s performance in the next three years”.
