The Rohatyn Group and Citi Venture Capital International said Tuesday that they will merge to form TRG, an emerging markets asset management firm. No financial terms were disclosed. The transaction is expected to close in the fourth quarter of 2013.
NEW YORK–(BUSINESS WIRE)–The Rohatyn Group (“TRG”), an independent investment firm focused on emerging markets, and Citi Venture Capital International (“CVCI”), an emerging market global private equity investment firm, today announced that they will combine to create a premier emerging markets asset management company that will operate as TRG. The transformative transaction expands and enhances TRG’s emerging markets investment capabilities and global reach, giving TRG a global footprint of 18 offices worldwide with more than $7 billion in total assets under management, approximately $6 billion of which is in private equity and approximately $1.2 billion of which is in liquid market strategies. TRG’s funds will include private equity, real estate, infrastructure, renewable energy, hedge funds, fixed income, and inflation-linked bonds.
The combination with CVCI continues TRG’s strategic growth strategy in critical emerging markets, notably Asia and Latin America. In 2012, TRG acquired a 60 percent stake in CapAsia, a Singapore-based mid-market infrastructure private equity firm focused exclusively on non-BRIC Emerging Asia. In 2011, TRG acquired 50 percent of ARCH Capital, a Hong Kong-headquartered Asian focused private equity real estate firm. In 2013, TRG partnered with BK Renewables Ltd. to jointly manage the Balam Fund, I, L.P. to make private equity investments in Mexico in the renewable power generation and energy efficiency industries.
Nicolas Rohatyn, Chief Executive Officer and Chief Investment Officer of TRG, said, “The addition of CVCI to TRG is truly transformative. CVCI has a track record of success and will be a great complement to TRG’s existing platform, including our distinctive hedge fund and fixed income emerging market offerings. We welcome the CVCI team to TRG and look forward to what we can achieve together.”
Jamie Forese, Co-President of Citi and Chief Executive Officer of Citi’s Institutional Clients Group, said, “We are pleased to have found in TRG a partner that shares CVCI’s commitment and expertise in emerging markets investment management and believe they will be a terrific steward of our clients’ assets in the CVCI funds.”
Mr. Rohatyn added, “To be truly excellent in investment management in emerging markets today one has to have several attributes: focus, of course; scale which allows for a broad on-the-ground presence essential to private investing; macro capabilities which allow for intelligent country selection and risk management; a diverse set of investment capabilities that will address the needs of investors in different asset classes, and an institutional-quality business platform that is up to the standards of the most demanding global clients. The combination of CVCI’s broad private equity capabilities, TRG’s private investing expertise in sectors and regions of significance in emerging markets, and our proven macro investing capabilities, will make TRG one of a very few independent asset managers to whom investors can turn for broad discussion about investing across this asset class.”
CVCI’s Chief Investment Officer Marc Desaedeleer will be appointed to the TRG Executive Committee. Mr. Desaedeleer and four CVCI partners – Enrique Bascur, Bob Khanna, Sunil Nair, and Ji Min (who is rejoining the firm) will also join the TRG management committee overseeing its private investing business, chaired by TRG’s Miguel Gutierrez.
Mr. Desaedeleer said, “We are very pleased to pair with TRG to create a leading emerging market investment manager that is exceptionally positioned to identify the best opportunities for investors. TRG’s global infrastructure and investment expertise will enable the CVCI team to embark on a new phase of growth, benefitting from increased resources and substantial opportunities for advancement and development as part of a focused Emerging Markets asset manager with unique private equity, hedge fund and fixed income products in this attractive space.”
Founded in 2001 and part of Citi’s alternative asset management platform Citi Capital Advisors, CVCI operates exclusively in emerging markets with a local presence in Singapore, Hong Kong, Mumbai, New Delhi, London, New York and Santiago and implements a unified investment and organizational strategy. CVCI currently oversees five funds as well as various select investments, with approximately $4.3 billion in equity investments and committed capital.
The transaction, terms of which were not disclosed, is expected to close in the fourth quarter 2013 in accordance with customary closing conditions.
Founded in 2003, The Rohatyn Group is a leading emerging markets asset management firm headquartered in New York, with offices around the globe including, Singapore, Hong Kong, London, Buenos Aires, Lima, Montevideo, Mexico City, and São Paulo. www.rohatyngroup.com
CVCI is a leader in global emerging markets private equity investing, and currently manages approximately $4.4 billion in equity investments and committed capital. CVCI has an internationally integrated investment team with a local presence in Singapore, Mumbai, New Delhi, Hong Kong, London, New York and Santiago.