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Capital International closes USD2.25bn emerging markets fund

Capital International Private Equity Funds, the dedicated global emerging markets private equity business of asset manager Capital International, has announced the final close of Capital I

Capital International Private Equity Funds, the dedicated global emerging markets private equity business of asset manager Capital International, has announced the final close of Capital International Private Equity Fund V with USD2.25bn in capital commitments, making it the largest global emerging markets private equity fund closed so far this year.

Since its launch 16 years ago, CIPEF has invested a total of USD1.8bn in 67 portfolio companies in 35 countries. CIPEF V is managed by a team of 19 investment professionals based in five countries and fluent in 20 languages, including the firm’s co-founders and senior managing partners Koenraad Foulon and Lam Nguyen-Phuong, and draws upon Capital International’s research network of more than 80 industry and country analysts in 10 offices.

‘The size and scope of this fifth-generation fund and the stature of early CIPEF V portfolio companies underscore the dramatic expansion of the emerging markets private equity investment opportunity,’ Foulon says.

‘Since 1992, we have worked methodically to build an experienced team with a strong track record in emerging markets private equity. CIPEF V is optimally sized to address the current generation of compelling emerging markets investment opportunities.’

The fund targets investments of between USD50 and USD250m in current or aspiring market-leading companies in various emerging market regions and industries. It has already committed more than 25 per cent of its capital to six investments, including Arcos Dorados, McDonald’s restaurant operations in Latin America, and Unimilk, the second-largest dairy producer in Russia and Ukraine.

CIPEF V has secured commitments from more than 70 institutional investors, including Pennsylvania Public School Employees’ Retirement System, Lockheed Martin Corporation Master Retirement Trust, Portfolio Advisors and various Middle Eastern, Japanese and other Asian institutions. MVision Private Equity Advisers was the exclusive global placement agent for the fund, while Debevoise & Plimpton served as legal counsel.

‘Our group of limited partners spans all major geographical regions and investor types, reflecting our global outlook and supporting our future goals,’ says Nguyen-Phuong. ‘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.

‘CIPEF’s 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.’

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