GREENWICH, Conn. – Hoping to capitalize on the Internet’s increasing penetration into emerging markets, The Atlantic has formed EMIT Capital as a new equity management subsidiary exclusively dedicated to investing in Internet and technology-related companies that are either based, or have significant business, in developing nations.
Scott Gordon, who last Friday resigned from his post as president and chief executive at ING Emerging Markets Investors, will head the company.
EMIT plans to offer a variety of investment vehicles, with a mutual fund, private equity fund and early-stage venture capital fund all in the works. The company currently is finishing up the registration paperwork on the mutual fund, which probably puts its debut sometime in mid-July, while the other two offerings have begun preliminary marketing and could be investing within three months time.
“What we decided was that instead of limiting ourselves to one particular product, we wanted to create an investment management shop dedicated to pursuing a wide range of opportunities in the emerging markets IT space,” Gordon said.
The private equity fund, which presently is unnamed, has a target of $300 million to $400 million, with average investments planned to fall within the $2 million to $10 million range. The early-stage venture vehicle has a target of $100 million and will invest between $500,000 to $3 million per round.
“In the past, one of the big limitations on doing private equity investing in the emerging markets has been the lack of available exit strategies in the public markets,” Gordon said. “Now, though, with the local capital markets recovered from the Russian crisis and the Asian crisis and a greater acceptance of foreign names in the U.S. public markets, the exit opportunities are not only more prevalent but also seem ready to evolve and be supported.”
EMIT Capital will temporarily operate out of The Atlantic’s home base, but it has plans to open a New York office. In addition, EMIT CEO Scott Gordon has also been made a partner in The Atlantic.