RevenueShares, the ETF sponsor known for its six-ETF suite of revenue-weighted funds, landed a $7 million investment from a Chinese venture capital firm in exchange for a 22% stake in the issuer’s parent company.
Suzhou Industrial Park Kaida Venture Capital specializes in funding high-tech and financial companies across China, Cinthia Murphy reports for Index Universe.
Suzhou paid $7 million for 22% of VTL Associates, RevenueShares’ parent company. At $7 million for 22%, the implied valuation for 100% of VTL Associates could be in the area of $30 million. VTL is looking for outside capital because the firm has primarily been funded by internal capital to this point, according to Index Universe.
The allure of growing in China, the world’s largest country by population and second-largest economy, appears to be part of the reason VTL was willing to part with a stake.
“Growing the market in China is one of the major reasons we chose them as partners,” VTL Chairman Vince Lowery told Index Universe.