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Data from PERE Research & Analytics has revealed that funds specific to each BRIC (Brazil, Russia, India and China) country had raised a total of $3.7 billion, across 15 funds, so far in 2014. Strategy-wise, opportunity funds make the majority of fundraising for BRIC countries, accounting for 73 percent of the total, or $2.7 billion. Debt fundraising, which leads all other strategies so far in 2014 on a global basis, came in second with a total of $653 million and value-add funds make up the remaining $339 million.
Out of these countries, China raised the most capital with a total of $1.8 billion, or roughly 49 percent. The largest fund to close for the country was the Prologis China Logistics Venture, managed by Prologis, which closed on an additional tranche of $588 million. India came in second, raising an aggregate $1.6 billion or 43 percent. A joint venture between the Canada Pension Plan Investment Board and Piramal Fund Management was the largest fundraise for the region, with an aggregate size of $500 million. The remaining balance was raised by Brazil, accounting for the last 8 percent. Russia has not seen a private real estate fund to close for the region yet.
Over the past three quarters this year, BRIC countries had raised a total of $3.7 billion. This represents a dip of approximately 37 percent from the same time last year, where a total of $5.9 billion had been raised. However, fundraising may pick up at the end of the year where a majority is usually raised for private real estate. Currently, there are 97 funds in market pursing an aggregate target of $22.1 billion for funds devoted to BRIC countries.