39168 - Carlyle Asia Growth Partners V

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Summary of Investment Information

Project Number

39168

Company Name

CARLYLE ASIA PARTNERS GROWTH I, LP

Date SPI Disclosed

Mar 9, 2017

Country

East Asia and Pacific Region

Region

East Asia and the Pacific

Projected Board Date

Apr 3, 2017

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Aug 4, 2021

Department

Disruptive Tech, Service & Funds

Industry

Funds

Previous Events

Approved : Jun 5, 2017
Signed : Jun 27, 2017
Invested : Aug 14, 2017

Sector

Growth Equity Fund

Project Description

The proposed project consists of an equity investment of up to US$25-30 million in the Carlyle Asia Growth Partners V, L.P. (“CAGP V” or “the Fund”), a 10-year closed end generalist private equity fund domiciled in the Cayman Islands and managed by an affiliate of The Carlyle Group (“Carlyle” or the “Fund Manager”). The Fund targets small buyout and late-stage growth capital investments primarily in China and India and opportunistically in South Korea. The Fund is targeting US$1 billion in commitments. The Fund is expected to make 15 to 20 investments with ticket sizes ranging between US$30million to US$75 million.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

Development Impact

(i) Economic growth and job creation: The proposed investment will contribute to the World Bank Group's goals of poverty alleviation by promoting job creation. The Fund will target investments in high-growth companies that are expected to create new employment opportunities by focusing on middle market growth equity investments, which historically have had the largest impact on job creation. (ii) Access to finance: the Fund will focus on small and midcap companies that need growth capital and seek value adding experienced partners that can help them realize their growth and cross-border expansion plans. (iii) Private sector development: Given its presence and investment track record across developed and regulated markets, Carlyle has a strong network, a well-recognized brand, and well-designed investment processes, governance, and reporting standards. The proposed investment will allow IFC to promote the use of such private equity best practices across emerging markets, as the growth in these markets requires a robust private equity industry to develop alongside more traditional sources of finance. Carlyle can bring multiple value added capabilities (M&A expertise, international expansion, and management enhancement among others) to help further private sector growth in the region.

(i) Mobilization: IFC's participation will help catalyze other investors in the Fund's subsequent closing, particularly given the current challenging fund raising environment on the back of institutional investors' reduced risk appetite to emerging markets. The Fund Manager will also benefit from cooperation with the IFC around outreach and education for investors based in the emerging markets. (ii) Environmental and Social ("E&S") best practices: While Carlyle has a strong E&S system, IFC's engagement will ensure the Fund's E&S practices are also in line with development finance institutions' best practices and IFC's thought leadership in this space. (iii) Partnership and regional support: Given IFC's strong presence and investment expertise and advisory engagements in China and India, and IFC's financing capabilities in these countries both in debt and equity, the Fund Manager will benefit from IFC's knowledge of the market and its clients' network, as well as allow the potential for the IFC to participate in co-investment opportunities (if any) alongside the Fund.

E&S Category Rationale / Risks and Mitigation

The Fund is targeting midcap private companies with medium E&S risks including: (i) consumer and retail; (ii) financial services; (iii) telecommunications, media and technology; (iv) industrial; and (v) healthcare operating in Asia. The Project is classified as a Category FI-2 project according to IFC's Environmental and Social Sustainability Policy. The Fund will be required to apply IFC's Exclusion List and meet the requirements of the relevant national E&S laws and regulations as well as IFC's Performance Standards.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
Tuhu	China	M-CG - Motor Vehicle Parts
Visionary RCM Infotech (India) Private Limited	India	S-AC - Other Medical
Yatsen Holding Limited	China	M-EA - Miscellaneous Consumer Products (Including Sporting and Athletic Goods, Exercise Equipment, Jewelry, Musical Instruments, Toys, Games, Diversified)
Abbisko Therapeutics	China	S-AB- Medical and Diagnostic Services
Anxin Apartment	China	D-AA- Construction and Real Estate
Energy Monster	China	V-BG- Renewable Funds - Renewable Energy Generation
Golden Goose Deluxe Brand	Italy	K-CB- Garment and Apparel (With Primary Textile Operations, Excluding Footwear)
Little Freddie Inc	China	F-AI- Other Food
LPG	France	S-AC- Other Health Services
Shanghai Lantu	China	M-CG- Motor Vehicle Parts
Spark Education	China	T-AA- Elementary and Secondary Schools

The main E&S risks and impacts of the project derive from investee companies' operation activities and the Fund's capacity and systems to manage the E&S risks associated with these activities. Investee companies' activities are expected to entail limited E&S risk and potential impacts that are generally few in number, site-specific, largely reversible, and can be readily addressed through mitigation measures. There is a limited likelihood for investments in companies exposed to significant E&S risks. The Fund Manager has a sound E&S Policy and environmental and social due diligence ('ESDD') procedures in place. The environmental social management system ('ESMS') includes a documented process to assess E&S risks and impacts associated with Fund's investments. The ESMS also includes roles and responsibilities, monitoring and reporting requirements, and guidance materials and tools for implementation. Chief E&S Officer is responsible for overall implementation of the ESMS. The Fund manager uses, on regular basis, qualified external E&S experts in its E&S risk assessment and management efforts.

Contacts

For Inquiries About the Project, Contact

The Carlyle Group
Mark J. Christopher
Managing Director
+1 202 729 5626

1001 Pennsylvania Avenue, NW, Washington DC 20004-2505

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Upgrade Applicable Requirements	03/31/2017
Establish external communication mechanism	03/31/2017

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