Japan's Orix signs up as LP for Mongolia Opportunities Fund

Mongolia Opportunities Partners was founded in 2009 and its maiden fund was set up in June 2011 with a target of $50 million. It targets high-growth sectors of the Mongolian economy such as mining, infrastructure and exports.

According to AVCJ Research, the fund reached a first close of $25 million in September 2011, with LP commitments from the International Finance Corporation, the European Bank for Reconstruction and Development and German development finance institution DEG.

"Orix is aggressively pursuing investment in growth areas in the high-growth Asian market," said the LP in a statement. The company aims to create a local network and contribute to the development of the Mongolian economy by capitalizing on its financial services know-how and client base accumulated in Japan.

Mongolian industry primarily consists of mining, herding and agriculture. Mongolia leads the globe in growth, with a 17.51% actual growth rate in 2011 and 12.67% forecasted for 2012 as of October last year, according to the International Monetary Fund.

Many regions in Mongolia have mineral deposits such as copper and coal, and the mining industry is predicted to become a future industrial pillar along with large scale expansion expected in infrastructure investment and related service industries.

Another PE firm that is active in the region is Silk Road Management, a Mongolia and Central Asia-focused investment firm, which raised $30 million for its debut fund, the Mongolia Human Capital Fund. The final close exceeded Silk Road's original target as of $25 million.

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• Topics
• Central Asia
• Fundraising
• Infrastructure
• Mongolia
• ORIX Capital
• Fundraising