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

    • Check out this week's top #startup deals and news on emerging tech in #LatAm from LAVCA's #LatAmVentureBulletin:… https://t.co/NOvUvkCflB

      27-Jan-2023

      Reply Retweet Favorite
    • #VC investment in #LatAm in 2022 reached USD7.5b, according to preliminary LAVCA data. Stay tuned for LAVCA’s yea… https://t.co/kAqAuL8Iq5

      23-Jan-2023

      Reply Retweet Favorite
    • January 20 is the last chance to register for "ESG in Venture and Tech Investing," the latest training in the LAVCA… https://t.co/UrbfcPgM7l

      19-Jan-2023

      Reply Retweet Favorite
    • Submissions for the 2023 LAVCA ESG Deal Awards are closing on January 20, 2023. LAVCA's ninth annual showcase will… https://t.co/AIu4FVKxT6

      11-Jan-2023

      Reply Retweet Favorite
    • Thank you for your continued support and commitment to grow private capital investment in Latin America. We look fo… https://t.co/AHA1txwyJZ

      30-Dec-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

    • Magma Partners Leads USD8.5m Round for Mexico’s Zenfi

      January 23, 2023
    • DILA Capital announces the final closing of its new fund, DILA IV, for USD115m

      January 17, 2023
    • Amplifica Capital Reaches USD11m Final Close for Venture Fund

      January 17, 2023
    • Framework Ventures Leads USD15m Round for Brazil’s Parfin

      January 17, 2023
    • DILA Capital Reaches USD115m Final Close for DILA IV Fund

      January 17, 2023
    • General Catalyst Leads USD10m Round for Brazil’s Genial Care

      January 13, 2023
    • Kayyak Ventures Leads USD10m Series A for Chile’s HealthAtom

      January 6, 2023
    • Kayyak Ventures Leads USD10m Series A for Chile’s HealthAtom

      January 6, 2023
    • IMPAQTO Capital Reaches First Close for USD2m Impact Fund 

      January 5, 2023
    • monashees and CapSur Capital Lead USD8m Round for Brazil’s The Coffee

      December 27, 2022
    • Brazil’s Paketá Secures BRL300m in Debt Financing from Milenio Capital

      December 14, 2022
    • Headline Leads BRL36m Round for Brazil’s Smart Break

      December 14, 2022
    • FEN Ventures and Innogen Lead USD7m Equity and Debt Seed Round for Peru’s Wynwood House

      December 14, 2022
    • Canary Leads ~USD4m Seed Round for Brazil’s Lastro

      December 14, 2022
    • Princeville Capital Leads USD70m Series D+ for Chile’s NotCo

      December 14, 2022
    • Alexia Ventures Leads USD16.5m Round for Brazil’s Seedz

      December 14, 2022
    • Gerdau Next Ventures and Inovabra Lead ~USD21m Series B for Brazil’s Docket

      December 14, 2022
    • Urban Innovation Fund Leads USD4.4m Seed Round for Mexico’s Plenna

      December 14, 2022
    • Gerdau Next Ventures and Inovabra Lead ~USD22m Series B for Brazil’s Docket

      December 7, 2022
    • Banco Santander Leads USD10m Series B for Chile’s Destacame

      December 7, 2022
    • Headline Leads ~USD7m Round for Brazil’s Smart Break 

      December 7, 2022
    • FEN Ventures and Innogen Lead USD7m Seed Round for Peru’s Wynwood House

      December 7, 2022
    • Chile’s Legria Raises USD6m From Chile Ventures, Genesis Ventures, Others

      December 7, 2022
    • Genesis Ventures, Amarena and Grupo Penta Invest USD6m in Chile’s Kredito

      December 7, 2022
    • Glisco Partners Leads USD27m Series B for Colombia’s Muncher

      November 23, 2022
    • DXA Invest and Arien Lead ~USD6m Series A+ for Brazil’s Aviation Platform Flapper

      November 23, 2022
    • Better Tomorrow Ventures and Metaprop Lead USD7.5m Round for Mexico’s Fintech Yave

      November 23, 2022
    • Lightrock Leads BRL145m Series B for Brazil’s Agrolend

      November 23, 2022
    • Mexico’s GoTrendier Raises ~USD15m Series B Led by IDB Invest, Creas Impacto and IDC Ventures

      November 22, 2022
    • Mexican Fintech Kapital Secures USD100m Debt Facility from Sivo

      November 8, 2022
    • Victory Park Capital and Industry Ventures Lead USD60m Equity and Debt Round for Mexican Fintech Mendel

      November 8, 2022
    • Mexico’s Quinio Raises USD40m in Equity and Debt Round

      November 8, 2022
    • Brazilian ERP Platform Ativy Secures ~USD24m in Venture Debt from Milenio Capital and Paramis

      November 8, 2022
    • FinTech Collective Leads USD10m Seed Round for Mexican Fintech mattilda

      November 8, 2022
    • KASZEK and DILA Capital Lead USD7.6m Round for Mexican Fintech Cicada

      November 8, 2022
    • Chan Zuckerberg Initiative Leads Series C for Brazil’s Beep Saúde

      November 8, 2022
    • Mexico’s Kukun Raises USD4.5m Round from FJ Labs, Antelo Capital and Others

      October 26, 2022
    • Colombia’s HoyTrabajas Raises USD5m Seed Round

      October 26, 2022
    • Lightspeed Leads USD5m Seed Round for Argentina’s Fidu

      October 26, 2022
    • Apollo Global Management Enters USD1.5b Financing Agreement with Brazil’s Embraer

      September 27, 2022
    • Fifth Wall Invests USD30m in Series C+ for Brazil’s Solfácil

      September 27, 2022
    • Globant Ventures invests ~USD1m in Uruguay’s Bunker DB

      September 27, 2022
    • Chromo Invest, Canary, Others Invest BRL9m in Brazil’s Civi; Canary Leads USD1.1m in Pre-seed Round for Mexico’s Bendo

      September 27, 2022
    • GSV Ventures Leads USD2m Seed Round for Peru’s uDocz 

      September 27, 2022
    • KASZEK and Y Combinator Leads USD5m Investment for Mexico’s DolarApp 

      September 27, 2022
    • Mexico’s Naya Homes Raises USD5.6m Seed Round From Carao Ventures, Clocktower Technology Ventures, Others

      September 27, 2022
    • Astella Leads BRL40m Series A for Brazil’s Amicci 

      September 27, 2022
    • Moore Capital Leads BRL40m Series A+ for Brazil’s BHub 

      September 27, 2022
    • monashees and Construct Capital Lead USD8.5m Round for Brazil’s Leoparda Electric

      September 27, 2022
    • Colombia’s RappiPay Secures USD11m Syndicated Credit Line from Bancolombia, Others

      September 27, 2022
    • Salkantay Ventures Reaches USD26m Final Close for First VC Fund

      September 27, 2022
    • Vinci Partners To Acquire Minority Stake in Brazil’s Efficopar 

      September 27, 2022
    • BTG Pactual To Acquire Brazil’s UPI Itiquira for BRL146.7m

      September 27, 2022

    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