LandOcean Energy Services, a Shenzhen-listed energy provider, on Friday announced that it has signed an agreement with Fordham Funds Management Company to launch a 1 billion yuan ($142 million) merger fund, per a company filing.
Fordham Funds will contribute as much as 800 million yuan ($114 million) into it while LandOcean Energy will put in the rest.
The fund will serve as a limited partnership with Fordham Funds as the fund manager. The partnership will last four years with active investments in the first three years, followed by the exit period.
The merger fund will target deals in sectors such as oilfield services, high-end equipment manufacturing, new energy and materials, and industrial intelligence that are aligned to LandOcean’s core business.
Established in 2014, Beijing-based Fordham Funds offers merger & acquisition solutions to listed companies and other investment services. With this partnership, Fordham seeks to expand its scope to the energy sector.
LandOcean Energy said the partnership will help the company allocate resources better and innovate its supply chain.