BancBoston Capital, the private-equity arm of United States-based BancBoston, has joined forces with Yu Ming Investments to invest US$12 million in Hong Kong-listed Innovative International (Holdings), a supplier of car accessories. Yu Ming arranged the investment, and its 50 per cent-owned affiliate - China Power Investment - will retain the initial tranche of US$7 million for its own account. BancBoston Capital will put in US$5 million through an affiliate. Peter Fung Yiu-fai, Yu Ming's managing director and Innovative board member since 1994, said the company's core business had enjoyed solid growth since its inception in 1990. 'I believe BancBoston Capital's investment in Innovative not only provides Innovative with capital but will also strengthen and broaden the US connections Innovative already possesses,' he said. Innovative will issue a convertible note bearing 9 per cent per annum interest that has a maturity period of three years. On conversion, the note holders will own - on a fully diluted basis - an 8.23 per cent stake in Innovative. 'This type of investment underscores a trend where private-equity investors can successfully access opportunities in the public markets,' said Rick Fritz, president of BancBoston Capital. Innovative had revenue of HK$792 million last year.