La Jolla, California-based investment management and advisory firm Pacific Corporate Group are forming a new subsidiary to invest in emerging markets outside the US, Western Europe, Japan and Australia. The new company will be managed by Steven Cowan, Gene Pohren and Stephen O’Neill.
Named PCG International, the firm will be based in Washington, DC and will work with long-time joint-venture partners like Mitsubishi– and Daido Life-backed AI Capital and Australia’s Macquarie Funds.
Cowan said the emerging markets are “developing to a level of maturity that makes them very exciting from a risk/reward perspective”, adding that there are also fewer participants in the space.
Cowan noted that the firm would focus on East, Southeast and South Asia and Central Europe, as well as Latin America, where the firm will concentrate on Brazil and the interplay between Mexico and the Hispanic market in the US. PCG International will also looks for opportunities in South Africa and Israel.
The firm’s business plan includes advisory services for institutional investors, as well as asset management, featuring separate accounts and eventually launching a fund-of-funds.
Cowan said possible PCG International clients could come from its parent’s existing client base, as well as institutional investors like large state pensions, endowments and high net-worth individuals. He also expressed a desire to work with governments looking to invest in the space.
Cowan and Pohren come from the quasi-government development organization Overseas Private Investment Corporation, while O’Neill is an investment banker who ran investment and advisory firm Battery Kemble, also based in Washington.
PCG was founded in 1979 and manages $22 billion in investments for institutional investors. Chris Bower is the firm’s chief executive officer.