107 private equity funds focused on investing in the emerging markets of Asia, Europe, Latin America, the Middle East and Africa raised US$21.5 billion in capital commitments in the first half of 2007, compared to US$33.2 billion raised by 162 funds in all of 2006, reports the Emerging Markets Private Equity Association (EMPEA).
“The pace of fundraising in the first six months of this year is evidence that investor interest in these markets is still growing,” said Sarah Alexander, EMPEA’s president. “These half-year figures are impressive, and we expect 2007 to be another record-breaking year for EM PE fundraising. A number of funds held significant closes later in the summer, and several large funds are expected to close by year’s end.”
EMPEA estimates at least an additional US$7.7 billion was raised for EM PE funds in July and August, bringing the total raised year-to-date to over US$28 billion. Funds raised for emerging markets private equity investments increased over nine-fold between 2003 and 2006, according to EMPEA estimates.
Funds focused on Asia accounted for US$11.6 billion of the total capital raised January to June, versus US$19.4 billion raised in all of 2006. China- and India-dedicated funds alone drew US$4 billion in commitments, while Pan-Asian funds raised US$7 billion. There are at least 21 US$1 billion-plus Asian funds currently in the market—including three funds each raising over US$3 billion that are expected to close by the end of 2007.
Latin American funds raised US$1.4 billion in the first six months of 2007. With the addition of two US$1 billion-plus closes that took place in July, funds in the region are poised to match fundraising levels not seen since the 1990s.
Funds focused on the African region took in US$592 million through June 2007. South African funds accounted for US$100 million of the US$592 million raised in the first half of the year. With the addition of two large closes by pan-African funds in July—one for US$1.3 billion and another for US$523 million—as well as US$1 billion being raised by South African funds, 2007 looks to be a watershed year for fundraising in the region.
Fundraising for the Central and Eastern European region totaled US$3.6 billion in the first half of 2007. Russia and CIS funds accounted for US$2.1 billion of total commitments.
Eight funds focused on the Middle East raised US$1.8 billion in the first six months of 2007. As of August 2007, EMPEA counted 60 funds raising an additional US$14 billion for investments within the region.
About EMPEA
The Emerging Markets Private Equity Association (EMPEA) is an independent, global industry association that promotes a greater understanding of and a more favorable climate for private equity investing in emerging markets. EMPEA’s 167 members collectively represent 40 countries and over US$400 billion in assets under management. For more information: http://www.empea.net.
Source: Business Wire