Buyout Funds Rush To India And China: Capital International Raises $2.25B Emerging Markets Fund

May 20, 2008 | by Shrija Agrawal

Capital International, the UK based buyout arm of the US-headquartered Capital Group, has closed a $2.25 billion emerging markets private equity fund to invest in countries like India, China, Russia and the markets in Latin America. The money has come in from more than 70 institutions, including the Pennsylvania Public School Employees’ Retirement System and Lockheed Martin Corp.
This is the fifth fund of Capital International (christened as Capital International Private Equity Fund V or CIPEF V), and is four times the corpus of its previous fund. The investments targeted will be in the range of of $50 million to $250 million in companies across various regions and industries. The fund has already committed more than 25 per cent of its capital in six companuies - including Arcos Dorados, McDonald’s restaurant operations across Latin America and Unimilk, the second-largest dairy products producer in Russia and Ukraine.