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CIPEF V is managed by Capital International Private Equity Funds, the dedicated global emerging markets private equity business of Capital International, which had more than $28 billion in assets under management as of September 2007. Capital International is a subsidiary of US-based Capital Group International, which had over $262 billion in AUM also as of September.
Capital International Private Equity Funds is among the first to focus on the global emerging markets model for private equity. The firm has invested $1.8 billion in 67 portfolio companies across 35 countries since 1992.
CIPEF V is managed by a dedicated team of investment professionals û including the firmÆs cofounders Koenraad Foulon and Lam Nguyen-Phuong û who count as their edge being based in five countries and fluent in 20 languages. The team also has access to Capital InternationalÆs more than 80 industry and country analysts based in 10 offices worldwide.
ôThe 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,ö says Foulon.
Foulon notes that the firm has been ômethodicallyö building its private equity team since 1992 and CIPEF V ômarks an important turning pointö. The latest fund is optimally sized to address the current generation of emerging markets investment opportunities, he says.
CIPEF V targets investments of $50 million to $250 million in both existing and aspiring market-leading companies across various emerging market regions and industries.
ôWhile 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,ö says Lam.
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 institutionalisation of banking systems, deregulation of many industries, and growth of the middle class, continue to favour global emerging markets private equity investment strategies.
Capital International Private Equity Funds believes emerging markets provide strong, long-term growth prospects and are expected by the International Monetary Fund to generate over 70% of global economic growth on a purchasing power parity basis over the next 20 years.
The fund has already committed more than 25% of its capital to six investments, including Arcos Dorados, McDonaldÆs restaurant operations across Latin America, and Unimilk, the second-largest dairy products producer in Russia and Ukraine.
The fund secured commitments from more than 70 leading global institutional investors, with strong support coming from repeat investors. More than 60% of the commitments came from new investors, including the Pennsylvania Public School Employees' Retirement System, Lockheed Martin Corporation Master Retirement Trust, Portfolio Advisors, and various Middle Eastern, Japanese and other Asian institutional investors which represent capital from each significant emerging market region around the world.
MVision Private Equity Advisers served as the exclusive global placement agent and Debevoise & Plimpton served as legal counsel.
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