Preston Ventures Overview
– Firm & Fund Mandate
– Preston Ventures Differentiators
– The Firm Structure
– Preston Ventures Partners
The Investment Opportunity
– PV Emerging Markets Opportunity Fund
– Investment Vehicle Overview
– The Market Opportunity
– Portfolio Target Example
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Appendix: Additional Preston Ventures Info
Preston Ventures Overview
Firm & Fund Mandate
• Administrative Manager and General Partner of Preston
Ventures Emerging Markets Opportunity Fund
• Focused on emerging market growth equity early-stage and mezzanine investing
• Geographic emphasis on China, India, and Latin America
• Target industries include Financial Services, Biotechnology,
Property Development, Media & Digital Living, Natural
Resources, Entertainment & Leisure
Preston Ventures Differentiators
We focus on key emerging markets, possess a growth equity mandate, and leverage GP relationships and experiences with the investment community and with integral industry and government players in our focus markets.
Source:
EMPEA LP Survey 2008
The Firm Structure
The GP boasts noteworthy fundraising, sourcing, transactional and operational experience, in addition to substantial relationships with the investment community and within emerging markets of interest.
Boston
Hong Kong
Mumbai
* Please refer to Appendix A for further d
Preston Ventures Partners
Both the GP and the PV Emerging Markets Opportunity Fund are aligned with premiere partners.
Wilmer Cutler Pickering Hale & Dorr LLP, Boston
Domestic Counsel
Shirley & Associates, Tortola
Offshore Counsel
Ernst & Young LLP, Boston
Auditor
ISIS Fund Services Ltd., Bermuda
Administrator
Global Angels, Hong Kong
Offshore Placement Agent
The Investment Opportunity
Investment Vehicle Overview
The PV Emerging Markets Opportunity Fund, L.P. has been structured in a traditional “master-feeder” fashion to accommodate both onshore and offshore investor needs.
PV Emerging Markets Opportunity
Fund, Ltd.
(British Virgin Islands “Master” – deploys capital; “feeder” for offshore investors)
PV Emerging Markets
Opportunity Fund, L.P.
(Delaware “feeder” for US investors) A
B
C
D
E
PV Emerging Markets Opportunity Fund Portfolio
PV Emerging Markets Opportunity Fund
This fund allows limited partners the opportunity to capture substantial returns from growth equity investments in rapidly growing emerging market regions.
• Conservative projections of portfolio IRRs greater than 22%
• Mandate for high rate of capital appreciation through acquisition and development of a diverse set of cross-sector holdings
• Geographic focus on China, India, and Latin America
• Minimum capital commitment of $1mm USD
• Minimum LP investment period of forty-eight months
• Total raise of $150mm USD
The Market Opportunity
In the midst of a volatile and challenging economic environment, the contribution of emerging markets to global growth has continued to accelerate.
Source:
International Monetary Fund
The Market Opportunity
A reduction in risk premiums relative to North American buyouts has further augmented the attractiveness of emerging market investments.
Source:
EMPEA LP Survey 2008
The Market Opportunity
There has been a substantial increase in private equity investments targeting emerging markets, regardless of institution type.
Source:
EMPEA LP Survey 2008
The Market Opportunity
Investments in emerging markets boast higher expected returns without a proportional increase in management fees.
Emerging Markets average =1.95%, North America/Western Europe, Global average = 1.8%
Source:
EMPEA LP Survey 2008
The Market Opportunity
China, India, and Latin America are major, high-growth emerging markets.
“The major emerging markets have become the main engines of world growth. For the first time, China and India are making the largest country-level contributions to global growth.”
- The International Monetary Fund
The Market Opportunity
China, India, and Latin America
