Emerging markets FoF makes final close on $600m

New York-based Siguler Guff has made a final close on its oversubscribed $600m (€496m) fund of funds targeting the BRIC markets.

Siguler Guff & Co., an investment advisory and fund of funds manager based in New York, has made a final close on $600 million (€496m) for its Siguler Guff BRIC Opportunities Fund LP.

The firm began raising its new Brazil, Russia, India and China (BRIC) focused fund of funds in early 2005. The new fund of funds – which will invest in local private equity GPs as well as make direct co-investments – is considered the first of its kind to focus solely on investment opportunities within the BRIC economies. Prior to establishing the BRIC fund of funds, Siguler Guff had already been active in Russia since the early 1990s through the firm’s Russia Partners subsidiary, which makes direct investments in Russia and other countries within the former Soviet bloc.

Siguler Guff originally targeted $350 million for the fund of funds, then last year revised the target upward to $500 million with a cap of $600 million due to investor demand. The firm has not named its investors in the new fund of funds, although Siguler Guff’s director of marketing, Thomas McGowan, told PEO that the BRIC fund has an investor base that includes corporate groups (representing 40 percent of committed capital), endowments and foundations (30 percent), high net worth individuals (15 percent) and public institutions. Eighty-five percent of the capital was committed by US investors, while the rest sourced from investors in Australia, Europe and the Middle East.

Managing director Patricia Dinneen is responsible for managing the new fund. Dinneen joined the Boston office of Siguler Guff in 2004, prior to which she led the emerging markets private equity advisory business of the Boston-headquartered financial consulting firm Cambridge Associates. Before her tenure at Cambridge Associates, Dinneen spent ten years at British Telecom, where she was involved in M&A transactions in India and elsewhere in Asia.

According to Dinneen, roughly one-third of the BRIC Opportunities Fund has already been committed to 11 funds, including ChrysCapital’s $555 million Indian fund and Actis Capital’s $225 million China fund. Seventy percent of the fund of funds’ capital is expected to be invested with GPs targeting India and China. Siguler Guff expects to open an office in China – likely in Shanghai – this year, as well as an office in India in 2007.