HNA to buy majority of Sky Bridge Capital

Crew members get off a plane of Hainan Airlines, a subsidiary of HNA Group Co, after landing at Nansha Islands. [Photo provided to China Daily]

HNA Group is seeking to expand its portfolio in the global asset management business by acquiring a majority stake in SkyBridge Capital, an alternative investment firm founded by Donald Trump adviser Anthony Scaramucci.

SkyBridge, a leading New York-based global alternative investment firm, announced that it has signed an agreement with HNA Capital (US) Holding and RON Transatlantic EG to sell the majority of its shares.

The deal is expected to close in the second quarter of 2017 and the detailed financial transactions were not disclosed.

HNA, the parent of Hainan Airlines Co Ltd, China's largest private airline, has strengthened its global portfolio with a string of overseas acquisitions in aviation, logistics and hospitality businesses.

The deal, the first acquisition of an alternative investment firm by HNA, would add to the assets of the group, which are now valued at more than 600 billion yuan ($87 billion).

"SkyBridge is a unique and innovative investment platform with a powerful brand that is well positioned to provide retail investors and their financial advisers with one-stop access to sophisticated alternative investment products," said Yang Guang, CEO of HNA Capital.

"Our investment in SkyBridge is an important step in HNA Capital's strategy to build a global asset management business."

As of November 2016, SkyBridge managed or advised approximately $12 billion in assets. The firm's investment offerings include hedge fund products, customized separate account portfolios, hedge fund advisory services and a long-only mutual fund, according to the company.

SkyBridge also hosts the SALT Conference in Las Vegas every year. It has been one of the world's leading investment forums that convenes global leaders across business, finance and public policy to discuss economic trends and investment strategies.

"SkyBridge has a comprehensive and in-depth knowledge of the US hedge fund market, and its portfolio includes many famous US hedge funds," said Pang Guoteng, an analyst at Morning Whistle Group, a Shanghai-based internet platform that helps Chinese capital conduct cross-border investment and overseas mergers and acquisitions, Caixin.com reported.

"Also, the SALT Conference will help HNA expand its industry contacts and step into US financial investment circles."