Siguler Guff closes BRIC FoF on $650m

The firm launched the emerging markets-focused fund of funds in 2011. 

Siguler Guff has closed its Siguler Guff BRIC Opportunities Fund III on $650 million, according to a statement.

It is unclear how much Fund III was targeting. Media reports previously put the target at $1 billion. Siguler Guff declined to comment.

Fund III will invest about 70 percent of its capital in fund investments and the remaining 30 percent in co-investments in the emerging markets, with a primary focus on Brazil, Russia, India and China, PEI previously reported.

“Given the recent and current volatility in the emerging markets, which has led to asset re-pricing and softer currencies, we expect this to be a strong vintage period,” managing director and emerging markets funds portfolio manager Ralph Jaeger said in the statement.

During the fundraising period for Fund III, Siguler Guff also closed three emerging markets-focused separate accounts, managed on behalf of large institutions, according to the statement. In September, The New Jersey Division of Investment committed $300 million to a separate account with Siguler Guff. New Jersey selected Siguler Guff because of its experience and local expertise, according to pension documents.

Last October, Siguler Guff invested about $17 million in southeast Asia-focused private equity firm Creador’s Fund II, which had raised $200 million toward its $250 million target as of February, a source familiar with the matter told PEI. The commitment represented a new relationship for Siguler Guff.

Siguler Guff has also raised a series of distressed opportunities funds, its most recent being Fund IV, which closed on $1.3 billion in 2010. The firm has also raised two small buyout opportunities funds, the latest launched in 2011, surpassed its $600 million target and raised $940 million, according to the firm’s website.

Siguler Guff began investing in the emerging markets in the 1990s and was the first US private equity firm to invest in Russia in 1995, according to the statement. The firm bills itself as the first BRIC fund of funds manager to establish an office in mainland China, in 2006.

Siguler Guff is based in New York and has offices in emerging markets such as São Paulo, Moscow, Mumbai and Shanghai. The firm has about $10 billion of assets, according to its website.