Capital International closes emerging markets fund at $3b
Capital International has closed it sixth emerging markets private equity fund at its hard cap of $3 billion, making it the largest vehicle of its kind to be raised in the last five years.
Capital International Private Equity Fund VI (CIPEF VI) exceeded its $2.5 billion target by raising capital from the likes of Ohio Public Employees Retirement System, Oregon Public Employees Retirement Fund and Pennsylvania Public School Employees' Retirement System.
Aside from these US-based LPs, CIPEF VI also received commitments from investors across Asia, the Middle East and Europe, with the help of placement agent MVision Private Equity Advisers. CIPEF VI was oversubscribed, thanks to securing commitments from more than 60 institutional investors. Around 90% of Capital International's re-upped for this latest fund.
The firm's investment team of 24 will make 15-20 investments from the fund, prioritizing 16 of the 138 emerging market countries in the world. In Asia, it will invest in buyout and expansion deals - the latter having historically made up two-thirds of its investments - in China, India and Indonesia. Almost 20% of the capital raised has already been channeled into three transactions, one of which is L&T Financial, the equipment and infrastructure affiliate of India's largest private sector engineering and construction company, Larsen & Toubro.
"We have no ‘must do' countries or sectors and believe this gives us a meaningful advantage when choosing which portfolio companies we want to partner with," said Lam Nguyen-Phuong, CIPEF co-founder and senior managing partner.
CIPEF VI - which was structured by law firm Debevoise & Plimpton - succeeds Capital International's fifth fund, a $2.2 billion vehicle whose investments to date have included a $600 million pre-IPO private placement of shares in Dili Group in collaboration with the Blackstone Group. Dill is an operator of wholesale vegetable markets, agricultural produce and supply chain facilities in China.
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