Entrepreneurs team up again in new firm

Oct 11 2007 by Andrew Mernin, The Journal

TWO entrepreneurs who sold off their internet business six years ago have been reunited to launch a consultancy firm which helps Chinese companies enter Europe.

North-East entrepreneurs Karl Watkin and Alan Donnelly – a former Euro MP – have joined forces to launch Sovereign Partners China.

The firm is a joint venture between Mr Donnelly’s business, politics and media consultancy Sovereign Strategy, and Mr Watkin’s China-focused £500m investment vehicle, Green Atlantic Partners.

The new business will assist Chinese companies looking to enter the European market and will also help international firms deal with the Chinese Government and regulators in the booming country.

Six years ago, the pair sold off shares in their Newcastle-based online joint-venture J2C before it ultimately ceased trading ahead of the bursting of the dotcom bubble. The two figures have since launched successful business ventures across the globe and have developed diversified portfolios.

Among Mr Watkin’s many business interests is Asian mining giant China Goldmines, Middlesbrough-based biodiesel firm D1 Oils and private jet business Plane Chartering.

Mr Donnelly, who spent 11 years in the European Parliament before launching Sovereign Strategy in 2000, has grown a global PR company with clients such as the management team behind Formula One racing and economic regeneration body NStar. The pair’s new venture is expected to sign up around five clients in its first year, turning a profit within its first 12 months in business.

The company was unable to say how much the firm was expected to turn over in its first year or how many people it is likely to employ.

Mr Watkin said: “I’ve been very active in China and the pace of change has been exponential.

“I’ve known Alan (Donnelly) for many years and respect what he has achieved with Sovereign. Both companies have developed world class complementary teams in their respective markets. Sovereign’s political and media intelligence in Europe is as unique as ours is in China and the Far East. I know both firms and many present and future clients will benefit from this partnership.”

Mr Donnelly said: “Our experiences in the Gulf region have shown us there is a market for what we provide – reputation management and unrivalled political and media intelligence. There is no one I would rather have alongside Sovereign as we go into China than Karl Watkin and his partners.”

Green Atlantic Partners was launched last year as a £500m, China-focused private equity fund with a diversified portfolio including Middlesbrough-based renewable energy firm Helius and hospitality group Bothy Lodge Holdings Company.

See page two to read more about Karl Watkin and Alan Donnelly.