A total of $11 billion has been raised for emerging markets private equity in the first half of 2010, representing an increase of 22 percent on the same period of 2009, according to research by the Emerging Markets Private Equity Association.
A significant increase in the total amount raised for African and Latin American funds contributed to the total increase this year, with both regions already exceeding their 2009 totals.
We anticipate funding levels to continue to pick up on the back of this more active investment environment.
EMPEA CEO Sarah Alexander
Final closes for two significant funds contributed to these regions’ totals and despite not reaching their expected targets, both are among the largest ever raised in their respective regions.
Emerging Capital Partners closed its third pan-African fund on $613 million in July, while in April, Advent International closed the largest Latin American fund ever raised: $1.65 billion on final close.
However, it is Asian funds that continue to dominate, raising $6.2 billion in the first half of 2010 – more than half the emerging markets total. China remains the leading destination for new capital, with China-dedicated funds accounting for one-third of the global emerging markets total.
“Investors remain cautious in their allocations to new funds,” said EMPEA chief executive officer Sarah Alexander. “But we anticipate fundraising levels to continue to pick up on the back of this more active investment environment.”
During the same period, total private equity investment in emerging markets rose from $8 billion to $13 billion.