Aureos plans to double funds

The emerging markets manager that spun out of CDC, a UK investor, is ramping up its fundraising with three funds in development and ten offices planned.

Aureos Capital, an emerging markets private equity fund manager, is planning to double its funds under management by 2009 to $1.2 billion.

Aureos specialises in unlisted mid-cap businesses across Asia, Africa and Latin America.

Speaking at the firm’s sixth annual conference for its investors, Sev Vettivetpillai, chief executive of Aureos Advisers, said it would launch a number of new funds and the open ten offices over the next few years to add to its current international network of 20.

An Aureos Central Asia Fund and a second generation pan-regional Aureos Latin American Fund are both scheduled for launch in 2007. A new pan-regional Africa fund is also being developed, he said.

The Aureos Central Asia Fund will be a $120 million fund focussing mainly on the Caspian Basin including countries such as Kazakhstan, Uzbekistan and Azerbaijan and will be managed out of a new office in Kazakhstan. The first close is scheduled for the first quarter of 2007.

The pan-regional Aureos Latin America Fund will be a $300 million fund which will invest in opportunities mainly in Central America, Mexico, Peru and Colombia. The first closing is expected to take place in the second quarter of 2007, with commitments of approximately US$150 million.

Vettivetpillai. “Our sweet spot is the sub- $10 million deal where really good returns are available and we are the only fund manager focussed on this mid-cap sector.”

Aureos Capital was formed in July 2001 to assume management of 14 funds originally sponsored by CDC Group, a UK investment agency, and to raise and manage a new generation of private equity funds under the Aureos brand.

Since then Aureos has more than trebled its funds under management and extended its geographical footprint to over 50 emerging markets.

Aureos currently manages 24 private equity funds through its network of 22 offices in Sub-Saharan Africa, South-East Asia, China, the Pacific Islands and Central America.