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| Description of company and purpose of project |
| A proposed IFC investment of $20 million in Carlyle Mexico Partners, L.P. (“Carlyle Mexico”) a private equity fund with target commitments of $250 million. The Fund is sponsored by The Carlyle Group (“Carlyle”) to invest in buyout or other private equity opportunities in Mexico and in U.S. companies that have a significant Hispanic customer base or cross-border initiatives. The Fund will target medium and large companies. The Fund expects to make 5-8 investments of between $20-50 million, acquiring controlling or significant minority stakes. |
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| Project sponsor and major shareholders of project company |
| Carlyle is a global private equity firm based in Washington, DC and with offices in 14 countries. Carlyle manages a total of $23 billion in commitments in 24 funds in the United States, Western Europe, and Asia. Carlyle Mexico General Partner, L.P., an Ontario limited partnership will be the General Partner and Fund Manager. |
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| Total project cost and proposed IFC investment |
| The target size of the Fund will be $250 million and IFC’s proposed investment is $20 million in equity up to a maximum of 19% of the total Fund size. |
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| Location of project and description of site |
| The Fund will be established as a limited partnership domiciled in a suitable jurisdiction and will invest in companies located principally in Mexico. The Fund Manager will manage the investments from its offices in Mexico City, and in Washington, DC. |
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| Project Development Impact and IFC's Role |
The Fund is expected to produce development impacts by:
- Supporting a top tier manager’s entry into a new country thus supporting the development of private equity in Mexico.
- Providing capital to companies and value added by introducing Mexican enterprises to best practices.
- Supporting adequate corporate governance practices. The Fund will focus on institutionalizing companies, improving transparency, improving management or financial systems and positioning the companies as market leaders.
IFC role:
Catalytic Role: IFC’s participation is expected to attract other investors to the Fund.
Support private equity in Mexico: Private equity in Mexico has endured three years of slow fund raising in the region and is now emerging from this drought in capital raised which increases the importance of each new fund raised. |
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| Environmental and social issues - Category FI-2 |
This is a category FI Type 2 project according to IFC’s Environmental and Social Review Procedure. As such, the management team will be required to commit:
- to undertake an environmental and social review of each sub-project;
- require all sub-projects to be carried out and operated in compliance with applicable host country environmental; health and safety requirements, in accordance with IFC safeguard policies and consistent with IFC's Exclusion List;
- require that Category A sub-projects meet the World Bank Group’s applicable environmental, health and safety guidelines; and
- obtain IFC’s clearance prior to making any Category A investment.
The sponsor's capacity to manage environmental and social issues will be evaluated by IFC.
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| To contact the project company, please write to: |
The Carlyle Group
Christopher Ullman
Vice President, Corporate Communications
1001 Pennsylvania Avenue, N.W.
Washington, DC 2004-2505 |
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