LAVCA | The Association for Private Capital Investment in Latin America
  • About
    • About LAVCA
    • Board, Team, & Advisors
    • Media
    • Contact
  • Members
    • Membership Benefits
    • Current Members
    • Member Access
  • Education & Programs
    • About
    • LAVCA Week
    • Calendar & Past Programs
    • LAVCA Education
  • Research & Directories
    • LAVCA Research
    • Industry data
    • LP Survey
    • Directories
  • ESG & Impact
    • Deal Book
    • LAVCA ESG Deal Awards
    • Impact Report
    • ESG Guidelines
  • Articles
    • Featured Articles
    • Industry News
  • VC
  • Member Login
  • Member Access

LAVCA | The Association for Private Capital Investment in Latin America

A non-profit member organization

  • About
    • About LAVCA
    • Board, Team, & Advisors
    • Media
    • Contact
  • Members
    • Membership Benefits
    • Current Members
    • Member Access
  • Education & Programs
    • About
    • LAVCA Week
    • Calendar & Past Programs
    • LAVCA Education
  • Research & Directories
    • LAVCA Research
    • Industry data
    • LP Survey
    • Directories
  • ESG & Impact
    • Deal Book
    • LAVCA ESG Deal Awards
    • Impact Report
    • ESG Guidelines
  • Articles
    • Featured Articles
    • Industry News
  • VC

LP Profile: Fiona Yung, Investment Manager of Carnegie Mellon University

September 23, 2014

LAVCA caught up with institutional investor Fiona Yung, Investment Manager for Carnegie Mellon University, to learn how their success with fund of funds in other emerging markets will color potential allocations to Latin America.

LAVCA: Please give some background on CMU’s investment office. What percentage of your portfolio do you allocate to Private Equity? What about emerging markets and Latin America specifically?

Yung: Carnegie Mellon University’s (“CMU”) Investment Office currently manages assets of approximately $1.5 billion and pursues a globally diversified, alternatives-focused investment program. Approximately 25%-30% of CMU’s endowment is allocated to private equity. Currently approximately 6.5% of the endowment is invested in dedicated emerging Asia private equity managers. The endowment does not have any dedicated exposure to or formal allocation to Latin America private equity or to any other emerging market region outside Asia.

LAVCA: What is your experience with the Latin American market? When did you start more closely tracking the region? What attracts you to LatAm?

Yung: CMU is seeking a globally-diversified investment program with a particular focus on private sector, domestic consumption growth across emerging markets. Latin America is particularly attractive for these reasons. I joined CMU’s investment office about 18 months ago from a background in China-focused private equity and first began tracking Latin America earlier this year. I am learning about the region, its opportunities and risks, and have been extremely grateful to LAVCA for helping me get up to speed.

LAVCA: How has your allocation to developed vs. emerging markets evolved in recent years?

Yung: Prior to 2005, CMU’s endowment pursued a US-focused, consultant-driven, traditionally biased investment strategy. Since 2005, CMU began staffing an internal investment team and began pursuing alternative investments including investments in private equity and emerging markets. CMU’s first investment in an emerging Asia manager was completed in 2006 and the university’s Asia private equity program has now grown to represent approximately 6.5% of the endowment. In public equities, the university’s allocation to traditional, passive, public emerging market equities has increased to approximately 10%.

LAVCA: Which LatAm countries are of most interest and why?

Yung: Brazil, as the largest economy in Latin America is of high interest. In Brazil, we find the mid-market most attractive and would be interested in a dedicated Brazil manager. We are also interested in the Andean region, Colombia and Peru, due to its comparatively high growth prospects and attractive demographics.

LAVCA: How does a team of your size effectively evaluate investment opportunities across asset classes and geographies? Do you ever work with fund of funds or investment advisors?

Yung: Staff bandwidth is likely the biggest constraint on expansion into new regions. We continue to work closely with global and regional fund of funds. The university’s first investment in Asia was a dedicated, regional fund of funds who has been a terrific partner for CMU. We continue to commit to this manager, even after establishing CMU’s own program, because their insights on the ground remain extremely valuable. We view this manager as an extension of CMU’s investment team. We would certainly consider replicating a similar fund of funds strategy in Latin America.

LAVCA: What are your views regarding exposure to global funds, versus regional or country-specific funds? Do you prefer managers that take an opportunistic approach or those with specific strategies? Would you consider managers who mainly conduct minority stake transactions?

Yung: We are generally biased towards regionally-focused or country-specific funds for larger economies, not global funds. We are simply looking for the best managers and are agnostic as to minority or buyout focus. What is more important for us is how the specific skill set of the manager complements their strategy and the microenvironment in which they operate.

LAVCA: What are the 2-3 biggest challenges for international LPs looking to invest in the region?

Yung: As a potential first-time, U.S. dollar, investor in Latin America, my biggest concern is currency risk. My second biggest challenge is to sufficiently understand individual market, legal, financial and regulatory dynamics within each country in order to appropriately evaluate the risk/reward opportunity set.

LAVCA: What is the typical size of commitment you make to a fund? Are the funds currently available in Latin America a good fit for an investor of your scale?

Yung: CMU’s typical commitment size is US$5m to US$10m which should be a good fit for many mid-market, single country and regional LatAm funds.

LAVCA: Can you describe your due diligence and selection process? What experience level are you looking for in a manager? Why? Would you consider investing in a first time GP (globally and/or in LatAm)?

Yung: CMU typically seeks GPs with a vetted track record. Particularly in emerging market private equity, we are ideally seeking managers raising their second fund or later, who have kept their original key team intact, where the fund size is similar enough in order to maintain a consistent investment strategy. We are looking for disciplined managers that buy well, have strong sourcing networks, have demonstrated value-add and have an exit or liquidity event track record. Diligencing a first time fund in Latin America would be extremely challenging for us; as a result, investing in a first time LatAm fund would be highly unlikely. Having said that, we find managers raising their second fund particularly interesting. In general, I prefer to first evaluate the dataroom and deal-by-deal track record before meeting in person or via conference call with GPs.

LAVCA: What are the most important factors you consider/characteristics you look for when selecting fund managers and what advice would you give to managers looking to work with CMU?

Yung: Very simply, we’re looking for GPs that complete good deals, that operate with the highest integrity and transparency and that have the potential to build (or already have built) an institutional quality platform that the university can continue to invest with over multiple fund cycles. We are looking forward to building an investment program in Latin America and hope to establish long term relationships in the region.

LP Profile: Fiona Yung, Investment Manager of Carnegie Mellon University was last modified: April 11th, 2017 by Editor
0
Facebook Twitter Google +

Sign up for LAVCA’s bi-weekly Latin American Private Capital Update and the LatAm Venture Bulletin, produced specifically for venture investors, entrepreneurs, and technology startups in the early stage ecosystem.






Which LAVCA Newsletter would you like to receive?

VC Partner Events

    Tweets

    • This week's top deals in the #LatAm #VentureCapital space include Mexico's @nowports and Brazil’s Dock both crossi… https://t.co/HtYef1OrO2

      27-May-2022

      Reply Retweet Favorite
    • "As of Q1 20221, VC now represents 50% of all private capital invested in Latin America, reaffirming the resilience… https://t.co/SLIWpyKAcT

      26-May-2022

      Reply Retweet Favorite
    • "Latin America had its fourth-largest quarter in startup investments to date, according to LAVCA." Our Director o… https://t.co/sj5G90Fvvn

      26-May-2022

      Reply Retweet Favorite
    • LAVCA's Director of Venture Capital @crdelavega_ gives the opening presentation on the current environment of #VC… https://t.co/b9WtDnppay

      26-May-2022

      Reply Retweet Favorite
    • We are excited to welcome a new member to our team, Marcelo A. Pizzato Dantas, Director of Programs and Partnership… https://t.co/5HEv1k8pWC

      24-May-2022

      Reply Retweet Favorite

    Submit VC News

    Have private equity or venture capital related news that you would like to share? Submit your press releases and news to [email protected].

    VC Industry News

    • Vinci Partners Acquires USD20m Stake in Brazilian Credit Provider DMCard

      February 21, 2022
    • 8VC Leads ~USD35.4m Round for Brazilian Insurtech 180 Seguros (em português)

      February 2, 2022
    • Glade Brook Capital Leads USD125m Series C for Chilean Insurtech Betterfly

      February 2, 2022
    • SP Ventures and Acre.VC Lead USD10m Series A for Brazilian Carbon Trading Marketplace Moss (em português)

      January 31, 2022
    • Brazilian Healthtech Nilo Saúde Raises USD10m Series A from Canary, MAYA, SoftBank, GFC and Tau Ventures

      January 28, 2022
    • Valor Capital Group Leads ~USD16m Series A for Brazilian Agtech Agrolend (em português)

      January 23, 2022
    • DILA Capital and Kayyak Ventures Lead USD15m Series A for Mexican Financing Platform Fairplay

      January 18, 2022
    • Astella Investimentos Leads ~USD4.6m Seed Round for Brazilian Blockchain Trading Platform Gavea (em português)

      January 12, 2022
    • SoftBank Leads USD48m Series B for Colombian E-commerce Laika

      January 12, 2022
    • KASZEK Leads USD13.2m Round for Mexican Fantasy Sports Platform Draftea

      January 7, 2022
    • IDC Ventures Leads ~USD5m Series A for Brazilian Microcredit Platform SuperSim (em português)

      January 6, 2022
    • Mexican Verification Platform MetaMap Raises USD70m Series B

      January 5, 2022
    • DRADS Capital Leads USD7m Pre-Series A for Chilean Foodtech The Live Green Co. (en español)

      January 3, 2022
    • SoftBank Leads USD127m Round for Brazilian Healthcare Provider Alice

      December 21, 2021
    • DILA Capital and ALIVE Ventures Lead USD14m Series A for Edtech Slang

      December 20, 2021
    • Astella Investimentos and SoftBank Lead ~USD3m Seed Round for Brazilian Automation Platform BotCity (em português)

      December 20, 2021
    • GIC Leads USD80m Round for Colombian POS Lending Platform ADDI (em português)

      December 20, 2021
    • Yara Growth Ventures Leads USD30m Series C for Argentine Agtech Agrofy (em português)

      December 16, 2021
    • Tiger Global Leads USD60m Series B for Mexican Freight Platform Nowports

      December 16, 2021
    • SoftBank Leads ~USD120m Round for Brazilian Fintech OpenCo (em português)

      December 15, 2021
    • DN Capital Leads ~USD22.2m Series A+ for Brazilian Healthtech Sami

      December 14, 2021
    • Riverwood Capital Leads ~USD52m Series B for Brazilian Fiscal Management Platform Arquivei (em português)

      December 14, 2021
    • KASZEK Leads USD2.7m Seed Round for Peruvian Edtech Crack the Code

      December 13, 2021
    • GIC Leads ~USD32m Series C for Brazilian Delivery Platform Shopper (em português)

      December 13, 2021
    • Tiger Global Leads USD20.5m Round for Mexican Freight Platform Nuvocargo

      December 10, 2021
    • Advent International and SoftBank Lead USD60m Series B+ in E-Commerce Aggregator Merama

      December 9, 2021
    • Volpe Capital Leads ~USD5m Series A for Brazilian Corporate Governance Platform Atlas Governance

      December 8, 2021
    • Lachy Groom Leads USD14.8m Series A for Brazilian Fintech Stark Bank (em português)

      December 8, 2021
    • Prosus Ventures Leads USD60m Series B for Colombian Edtech Platzi

      December 6, 2021
    • KASZEK Leads USD10m Series A for Brazilian Workspace Marketplace Beer or Coffee (em português)

      November 30, 2021
    • Galapagos Capital Invests ~USD20m in Brazilian Cosmetics MedBeauty (em português)

      November 18, 2021
    • Oak HC Leads USD27m Series A for Mexican Payment Platform Aplazo

      November 15, 2021
    • Colombian E-commerce Fulfillment Platform Melonn Raises USD4.5 Seed Round

      November 3, 2021
    • DNA Capital, Temasek and Fit Participações Lead ~USD20m Round for Brazilian Healthtech Memed

      November 1, 2021
    • Astella Investimentos Leads ~USD5m Round for Brazilian Proptech Homelend (em português)

      October 28, 2021
    • KASZEK Leads USD8m Round for Brazilian Car Documentation Platform Gringo

      October 27, 2021
    • SoftBank Leads USD75m Series C for Brazilian BPO Platform Pipefy

      October 26, 2021
    • Mexican Delivery Platform Skydropx Raised USD20m Seres A from Cometa, Base10 Partners, 645 Ventures

      October 26, 2021
    • Brazilian Car Insurtech Justos Raises ~USD35.8m Series A from SoftBank, KASZEK and Others

      October 25, 2021
    • Andreessen Horowitz and Base Partners Lead USD15m Series A for Colombian Foodtech Foodology

      October 22, 2021
    • Unbox Capital Leads USD30m Series B for Brazilian Marketing Platform Rock Content (em português)

      October 22, 2021
    • L Catterton Leads Investment in Mexican DTC Eyewear Brand Ben & Frank

      October 21, 2021
    • Anthos Capital Leads USD18m Series A for Venezuelan Delivery Platform Yummy

      October 21, 2021
    • Flourish Ventures and GFC Lead USD10m Series A for Brazilian Wholesale Marketplace Merce do Bairro

      October 21, 2021
    • Tiger Global Leads USD35m Series A for Argentine Fintech Pomelo

      October 21, 2021
    • Brazilian Wholesale Marketplace Inventa Raises ~USD6m Seed Round (em português)

      October 20, 2021
    • QED Investors and KASZEK Lead USD40m Series C for Brazilian Fintech Hash

      October 20, 2021
    • SoftBank, Amazon and Accel Lead USD108m Series B for Brazilian Fintech Pismo (en español)

      October 19, 2021
    • SP Ventures and Astella Investimentos Lead USD17m Series A for Brazilian Fintech Traive (em português)

      October 18, 2021
    • Tencent and SoftBank Lead USD200m Series F for Brazilian Trucking Marketplace CargoX (em português)

      October 15, 2021
    • Valor Capital Group Leads USD22m Series A for Mexican Edtech Aprende Institute

      October 11, 2021
    • Square Capital and Hard Yaka Invest USD15m in Colombian Digital Payments Platform Movii (en español)

      October 6, 2021
    • Atlantico Leads USD6m Series A for Brazilian Wholesale Marketplace ZAX

      October 5, 2021

    About LAVCA

     

    LAVCA is the Association for Private Capital Investment in Latin America, a not-for-profit membership organization dedicated to supporting the growth of private capital in Latin America and the Caribbean through research, education, networking and advocacy.

    LAVCA Office

        New York City:
        589 8th Ave, 18th Floor
        New York, NY 10018

    Explore LAVCA.org

    • About LAVCA
    • Board, Team, & Advisors
    • Media
    • Contact Us
    • Membership Benefits
    • Members Only Access
    • Education and Programs
    • Research
    • Policy
    • LAVCA VC
    • Contact Us

    @2020 - LAVCA. All Rights Reserved.


    Back To Top