By Aubrey Rose A. Inosante, Reporter
THE Maharlika Investment Corp. (MIC) and Thailand’s Charoen Pokphand Group Co., Ltd. (CP Group) have agreed to set up a private equity fund to raise up to $1 billion for investment in agriculture and food production, digital innovation, and sustainable energy.
In a statement on Monday, MIC President and Chief Executive Officer Rafael D. Consing, Jr. and CP Group Chairman Soopakij Chearavanont signed a memorandum of agreement witnessed by President Ferdinand R. Marcos, Jr.
“With this collaboration, MIC and CP Group aim to establish a private equity fund, with target to raise up to $1 billion,” the MIC said.
CP Group, founded in 1921, operates in more than 30 countries with businesses in agriculture, food production, and retail.
“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,” Mr. Consing said.
The MIC said a steering committee will drive project selection, fund structuring, and investor engagement. Its first capital close is expected within the next 9-12 months.
“The members will be composed of representatives from both MIC and CP Group, bringing together their respective expertise and perspectives,” he told BusinessWorld via Viber.
Mr. Consing said that the steering committee will provide strategic oversight, while the day-to-day management of the fund will be handled by a team of investment professionals.
“We are currently in the process of finalizing the composition of the steering committee and the fund management structure,” he said, noting that the fund will engage with potential investors in the coming months.
Among the key investment areas are agri-food modernization, digital and e-commerce projects, financial technology, renewable energy and infrastructure.
“CP Group’s century of experience building successful businesses, coupled with MIC’s mandate to strategically invest in key sectors of the Philippine economy, create a compelling proposition for potential investors,” Mr. Consing said.
The sovereign wealth fund has not yet formally solicited indications of interest from Philippine companies, he said.
“We anticipate strong interest from both domestic and international players who recognize the potential for investment returns while contributing to the sustainable development of the Philippines,” he said.
Foundation for Economic Freedom, Inc. President Calixto V. Chikiamco said via Viber that the MIC’s foreign partnership is a “good sign” that it is able to leverage its investment.
Michael Henry Ll. Yusingco, a fellow at the Ateneo de Manila Policy Center said the fund must comply with constitutional limitations on foreign ownership and cannot invest in areas not sanctioned by its charter, “no matter how lucrative they are.”
Mr. Yusingco said allowing representatives from the CP Group for the private equity fund’s steering committee but the majority must still be Filipinos.
“As far as areas of need, investments in the energy sector, public transportation system, and food production need to be prioritized,” Mr. Yusingco told BusinessWorld via chat.
He said the fund’s advantage is that it can mobilize funding more rapidly than the government.
