By Robert Miron and Ben Whitehouse, AxiosStaff writersIt’s no secret that investors want to own assets in emerging markets like China, Brazil and India, but it’s a lot harder to find money to back them.
Buckingham Partners, a new venture capital fund founded by two brothers, is trying to help by creating an investment vehicle that will help hedge funds and other investors take advantage of a global asset class known as “bulk” cash.
The strategy would help hedge fund investors who invest in companies that are struggling to pay dividends, but the funds would also make it easier for large investors like billionaires to invest in these companies.
Buckingham is building the fund through a series of partnerships with some of the most notable Chinese companies, and it plans to use the funds to buy shares in these assets.
The fund, which will be publicly traded on the New York Stock Exchange this month, will be backed by about $50 billion in cash from Chinese and other foreign investors, according to the New Yorker.
Buckskin Capital has already been used by the Obama administration to help foreign investors fund investments in American corporations.
But Buckingham is aiming to be more aggressive, and will be looking to take a bigger slice of this new money.
The investment vehicle will work like a traditional stock-market fund, with its investors buying in the companies and then investing in the company’s stock.
Buckham is hoping that by the end of the year, it can generate more than $1 billion in total funds.
In a statement, Buckham said it aims to raise $2 billion in new cash by the middle of next year.
Buckham is already looking to use its fund to invest into several Chinese companies and companies that it has worked with in the past, including a $300 million fund that the New Jersey-based Buckham Group used to help finance a new luxury-car brand, Cadillac.
The company announced plans to build cars in China this month and in the U.S. later this year, according