Two former Overseas Private Investment Corp. (OPIC) private equity professionals have joined Pacific Corporate Group of La Jolla, Calif., to form PCG International, a Washington D.C-based firm that is raising a new fund-of-funds under tha PCG name.
Industry sources say that the new firm is seeking a minimum of $200 million, which will be invested with an emphasis on mid-market buyouts in Asia, Latin America, and Central and Eastern Europe.
Managing Directors Steven Cowan and Gene Pohren told Buyouts that people should not confuse the new firm’s investment profile with that of OPIC or Actis, the CDC spinout, which focus exclusively on up and coming countries. “While we are interested in the emerging markets of China and India, we’re also interested in opportunities in industrialized economies,” Cowan said.
All three of the group’s founders – Cowan, Pohren and former investment banker Stephen O’Neill – have substantial Asia experience. Cowan said that the group and its current staff of three will remain in Washington. The group is currently preparing its private placement memorandum and will have additional help from PCG in raising its fund-of-funds.
PCG, which has recently undergone downsizing of assets and loss of senior staff as it shifts from an investment advisory to active asset management, will not only provide assistance to the new group in raising funds, but will also participate as an LP in the FoF. Cowan said that PCG wants to hold a substantial position in the fund and that it’s too early to project a first close date for the group. Primarily, the FoF will focus on buyouts, and the typical size of the funds in which it will invest will range from $150 million to $500 million. However, Cowan said that although the firm is focused on investing in buyout funds, there will be some allocation for distressed, venture and mezzanine funds to round out the portfolio.
In terms of sector focus, Cowan says that will depend upon the region, but will likely range across various sectors.