Capital International Closes $2.25bn for EM Private Equity
06/02/2008
Author:
Capital International, Inc.
London, United Kingdom
| Categories:
Private Equity |
Article:
May 19, 2008 – London, UK – Capital International Private Equity Funds (“CIPEF”), the dedicated global emerging markets private equity business of Capital International, Inc., announced the final close of Capital International Private Equity Fund V (“CIPEF V”), totalling $2.25 billion. CIPEF V is the largest global emerging markets private equity fund closed this year.
CIPEF pioneered the global emerging markets model for private equity and since 1992 has invested $1.8 billion in 67 portfolio companies across 35 countries. CIPEF V is managed by a dedicated team of investment professionals, including CIPEF co-founders Koenraad Foulon and Lam Nguyen-Phuong, that is based in five countries and fluent in 20 languages. The experienced CIPEF private equity team leverages Capital International’s global research network with access to over 80 industry and country analysts based in ten global offices.
“The size and scope of this fifth generation CIPEF fund and stature of the early CIPEF V portfolio companies underscore the dramatic expansion of the emerging markets private equity investment opportunity,” said Koenraad Foulon, CIPEF co-founder and senior managing partner
. “Since 1992, we have worked to methodically build a deeply experienced team with a strong track record in emerging markets private equity. CIPEF V marks an important turning point for us and is optimally sized to address the current generation of compelling emerging markets investment opportunities.”
CIPEF V targets investments of $50-$250 million in both existing and aspiring market-leading companies across various emerging market regions and industries. CIPEF V has already committed more than 25% of its capital in six investments, including Arcos Dorados, McDonald’s restaurant operations across Latin America, and Unimilk,
the second-largest dairy products producer in Russia and Ukraine.
CIPEF V secured commitments from more than 70 leading global institutional investors, with strong support coming from repeat investors. CIPEF V commitments, over 60% of which came from new investors, include Pennsylvania Public School Employees' Retirement System, Lockheed Martin Corporation Master Retirement Trust, Portfolio Advisors, LLC, and various Middle Eastern, Japanese and other Asian institutional investors which represent capital from each significant emerging market region around the world.
“We are pleased to have assembled such an outstanding group of limited partners, spanning all major geographies and investor types, reflecting our global outlook and supporting our future goals. While the CIPEF V target investment size has increased, we remain true to our core investment philosophy of backing strong emerging market management teams in their expansion efforts,” said Lam Nguyen-Phuong, CIPEF co-founder and senior managing partner. “CIPEF’s deep experience in emerging markets private equity, combined with Capital International’s global research network, allows us the flexibility to pursue compelling investment opportunities while not being limited to any individual sector or region.”
Emerging markets are an increasingly dominant force within the global economy, representing 85% of the world's population, almost half of the world's GDP on a purchasing price adjusted basis and the source of 35% of world exports. Structural improvements and macro-economic trends, such as the institutionalization of banking systems, deregulation of many industries, and growth of the middle class, continue to favor global emerging markets private equity investment strategies. Importantly for CIPEF, emerging markets provide strong, long-term growth prospects and are estimated by the International Monetary Fund to generate over 70% of global economic growth on a purchasing power parity basis over the next twenty years.
MVision Private Equity Advisers served as the exclusive global placement agent and Debevoise & Plimpton LLP served as legal counsel.
About Capital International Private Equity Funds (“CIPEF”)
CIPEF is the dedicated emerging markets private equity business of Capital International, Inc. (“CII”). As one of the most established emerging markets private equity investors, CIPEF has more than 16 years of private equity experience focused solely on the emerging markets. The CIPEF investment team consists of 19 professionals with an average of 16 years of relevant investment experience who are located in five offices around the world, represent 15 countries of origin and are fluent in 20 languages. CIPEF has invested $1.8 billion in 67 portfolio companies across 35 countries since 1992.
About Capital International, Inc. (“CII”)
Capital International, Inc. is an institutional investment manager and one of The Capital Group Companies, which is privately owned. CII has over 20 years of emerging markets investment experience. Investment management is the only business of the Capital organization. Founded in 1931, the Capital organization is one of the world’s largest investment management firms.
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