Washington, DC, April 22, 2004—The International
Finance Corporation, the private sector arm of the World Bank Group, will
become an anchor investor in the newly formed Emerging Markets Small Cap
Fund LLC. The fund has a global focus and will invest primarily in companies
listed in emerging markets with market capitalization below $500 million.
IFC’s investment will comprise up to 15 percent of the fund’s volume
and will be capped at $10 million. The Ireland-listed fund has an initial
target size of $200 million and will be managed by Emerging Markets Management
(EMM). The fund will be quasi open-ended, with the possibility of monthly
subscriptions and redemptions.
IFC’s director for private equity and investment funds, Teresa Barger,
said, “Investors and market researchers often pay too little attention
to smaller listed companies, especially in the emerging markets. The Emerging
Market Small Cap Fund will demonstrate the value of investing in this sub-asset
class. IFC’s engagement will help attract other private sector investors
and increase trading volumes and liquidity. The investment also underlines
IFC’s commitment to supporting managers with a good track record.”
Virginia-based EMM managed $9.0 billion in assets, primarily for listed
equities in emerging markets, as of December 31, 2003. EMM’s president
and chief investment officer, Antoine van Agtmael, noted, “We are pleased
to have IFC’s support with this new initiative. For this new fund,
we hope to discover and focus on those companies which will become the
next leaders in emerging markets.” The Emerging Markets Small Cap
Fund team will be managed by Felicia Morrow.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people's lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956, IFC has committed more than $37 billion of its own funds and arranged
$22 billion in syndications for 2,990 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY03 was $16.8 billion.