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Azeris, Dutch, Koreans, Saudis Invest in the IFC African, Latin American, and Caribbean Fund

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According to the IFC Press Release, “Investors from Azerbaijan, the Netherlands, Saudi Arabia, and South Korea have joined IFC in committing to a fund to make equity investments in companies in Africa, Latin America, and the Caribbean, providing a new way to finance growth and jobs in the developing world.

IFC has committed up to $200 million as a limited partner in the IFC African, Latin American, and Caribbean Fund, L.P. Other anchor investors in the fund, with total commitments of up to $600 million, are PGGM, the Dutch pension fund manager; Korea Investment Corporation; State Oil Fund of the Republic of Azerbaijan; and a fund investor from Saudi Arabia.

The fund provides an opportunity for sovereign and pension fund investors to co-invest for the first time with IFC in growth equity investments in developing countries. The fund is part of IFC’s broader strategy to increase its commitment to Africa, Latin America, and the Caribbean and to mobilize third-party capital where it is needed most.

“Pension and sovereign funds represent a significant savings pool that is seeking commercial returns and portfolio diversification,’’ said World Bank Group President Robert B. Zoellick, who in 2008 called for sovereign wealth funds to invest in equity in sub-Saharan Africa as a way of tapping long-term global savings to boost investment opportunities and development. “`With this fund, we will demonstrate that developing countries have high-quality investment opportunities to attract commercial investors. The private sector will be crucial to a sustained recovery from the global economic crisis and for future growth.”

Lars Thunell, IFC CEO and Executive Vice President, added, “This fund is part of IFC’s strategy to address the increasing number of investment opportunities in frontier markets. With the launch of this fund we are providing equity co-investment opportunities to sovereign and pension fund investors for the first time. We are proud to work with these institutions, which share our vision of sustainable investment opportunities in these markets.”

Fons Lute, the Managing Director Alternative Strategies at PGGM, said: “We are very pleased about this new partnership with IFC, which will give us greater access to frontier markets where we see a lot of potential for growth over the long term,”

The fund will be managed by IFC Asset Management Company, LLC (“AMC”), a wholly owned subsidiary of IFC. This is AMC’s second fund under management, joining the $3 billion IFC Capitalization Fund, which invests in systemically important banks in emerging markets.

Private sector development remains the most effective way for developing nations to grow, create jobs and provide people with the opportunity to escape poverty. The establishment of the IFC African, Latin American, and Caribbean Fund comes as net private capital flows to emerging markets have declined significantly since their peak in 2007. From the perspective of investors, investments in emerging markets, especially frontier markets, represent an asset class that can bring diversification and long-term capital-growth opportunities.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Through its investments — including in this first-of-its-kind IFC African, Latin American, and Caribbean Fund — IFC creates opportunities for the poor in developing countries.”

read more: IFC Press Release

SWFI First Read, June 21, 2018

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PSP Investments Nears Deal on Azelis

PSP Investments and EQT Partners (through fund EQT VIII) are in exclusive talks to acquire Belgium-based Azelis S.A. from funds managed by Apax Partners. Formed in 2001, Azelis is a specialty chemicals and food ingredients distributor. The transaction is subject to regulatory approvals.

Oxford Properties Wins Rights on Barangaroo Office Development

Melbourne-based Grocon Pty Ltd selected Oxford Properties, the real estate unit of OMERS, as a preferred partner for it’s a A$ 2 billion, 5.2-hectare Barangaroo Central project development. This is an office tower development. Oxford Properties essentially won the rights toward the project (rumored at a price of A$ 100 million), freeing the developer from a high-cost finance deal with Maxcap, a lender.

Investment Management Corporation of Ontario Selects Jean Michel as CIO

The Investment Management Corporation of Ontario named Jean Michel as chief investment officer. This role is effective July 3, 2018. Michel was executive vice president, advisory services to depositors and strategic analysis, at Caisse de Depot et Placement du Quebec (CDPQ).

Wil Warren Named President of Lexington Partners

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Large Public Asset Owners Commit to Goodman Brazil Logistics Partnership

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Canada Pension Plan Investment Board (CPPIB) unveiled plans to commit 500 million BRL (C$ 175 million) in equity for a 20% interest in the newly established Goodman Brazil Logistics Partnership to invest in prime logistics and industrial assets in the key gateway cities of São Paulo and Rio de Janeiro. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Mubadala Supports Two European Aquaculture Transactions

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Mubadala Investment Company is keen on growing exposure to agribusinesses whether in farming or aquaculture. With money from Mubadala and AMERRA Capital Management LLC, Andromeda Group acquired Nireus SA (at 74.34% stake) and Selonda SA at (79.62% stake), two European aquaculture companies that focus on sea bream and sea bass. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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