A private equity fund worth $1 billion will be formed through a partnership between the Maharlika Investment Corp. (MIC) and Thailand’s Charoen Pokphand Group Co., Ltd. (CP Group).
MIC president and chief executive officer Rafael Consing Jr. and CP Group chairperson Soopakij Chearavanont sealed the partnership through the signing of their memorandum of understanding last Saturday at the Malacañang Palace. President Ferdinand Marcos Jr. attended the signing ceremony.
“This partnership will lay the groundwork for a multi-sectoral investment initiative that will drive long-term economic growth while reinforcing the Philippines’ position as a premier investment destination,” Consing said in an MIC statement shared by the Department of Finance on Monday.
MIC manages the Maharlika Investment Fund which is the Philippines’ sovereign wealth fund aimed at augmenting government revenues by tapping various investment instruments, such as private equity, to support key projects for long-term economic growth.
Private equity managers pool funds from investors to buy and improve companies before reselling them to gain higher profits. MIC and CP Group eye raising up to $1 billion in private equity funds.
“A steering committee will drive project selection, fund structuring, and investor engagement, with the first capital close expected within the next nine to 12 months,” MIC said.
MIC said investment proceeds will support the modernization of agricultural value chains, wider use of financial and digital technologies and renewable energy.
MIC received an initial capital of P125 billion, partly from Land Bank of the Philippines and Development Bank of the Philippines. It has an authorized capital stock P500 billion under Republic Act 11954 which was signed by Marcos into law in July 2023.
As to Thailand’s CP Group, it has been operating eight business clusters in over 30 countries since it was founded in 1921: agro-industry and food, retail and distribution, media and telecommunications, e-commerce and digital services, automobiles, pharmaceuticals, industrials, and finance and investment.