TPG names ex-head of IFC as partner

Jin-Yong Cai, former CEO of the International Finance Corporation will join TPG Capital to help expand its investment strategy in emerging and frontier markets.

Texas-based alternative asset firm TPG Capital has named Jin-Yong Cai as a new partner at the firm to lead new investments in developing economies.

Cai joins the firm after almost four years at the International Finance Corporation (IFC), the investment arm of the World Bank Group, where he served as executive vice president and chief executive officer.

In a newly created role at TPG, his responsibilities include working across TPG’s investment platforms to source opportunities in projects and companies that help to accelerate the economic growth of frontier and emerging markets, according to a statement.

Cai will be leveraging TPG’s existing investments in Asia, Africa and Latin America and focus on areas such as energy, telecoms, logistics and commodities, a source with knowledge of the matter told Private Equity International.

Cai will also be building a team of senior managers with substantial experience and expertise similar to his to implement this strategy, the source said.

Cai’s appointment will be effective 1 February 2016.

Cai has more than 20 years of experience in the financial services industry. He came under fire in early 2015 for an unusual $1 billion loan made by China to the International Development Association (IDA), the World Bank’s funding arm for the poorest countries, according to reports. He worked with World Bank chief finance officer Bertrand Badré to allow China to increase its lending through the IDA, which was criticised as a conflict of interest. Cai left the IFC before his four-year term ended, while Badré will leave the bank in March 2016.

Prior to Cai’s appointment at IFC, he was a partner at Goldman Sachs Group for 12 years and its top executive in China. Before that, he held senior positions at Morgan Stanley where he was a key player in developing China’s first joint venture investment bank, China International Capital Corporation. He started his career as an economist at the World Bank Group in 1990.

Cai will be based in Washington, D.C. and will work closely with Tim Dattels, managing partner of TPG Asia and William E. McGlashan, managing partner of TPG Growth.

“Sourcing investments and helping build new businesses in frontier and emerging markets continue to be an important part of TPG’s business and future growth,” said Jim Coulter, co-founder and co-CEO of TPG, in a statement.

“Partnering a leader of Jin-Yong’s experience and depth with our local teams in China, Southeast Asia, India and Africa is a truly exciting next step for TPG.”

TPG recently exited its three-year investment in Shanghai-based packaging firm HCP. Baring Private Equity Asia has fully acquired TPG's 100 percent stake in  HCP for $775 million.

In June 2015, TPG Growth announced a partnership with London-based Satya Capital to launch a $1 billion investment platform for which it recruited the former president of the African Development Bank Group, Donald Kaberuka as a senior advisor, as reported by PEI. 

TPG-Satya made its first investment in Ecoles Yassamine, a private school network in Morocco in September.