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BRIC-based LPs investing in private equity

by Bogusia Glowacz

  • 06 Sep 2011
  • PE

Over the past decade, the private equity industry has paid more attention to the fast-growing developing economies of Brazil, Russia, India and China. These countries are unlocking their potential as global economic powerhouses by opening their economies and reforming regulation.

Preqin data reveals that there are 132 BRIC-based LPs currently investing in the private equity asset class, which is an equivalent of 3.6% of all active investors in private equity, including fund of fund managers. China hosts the largest number of investors with BRIC (42%), followed by Brazil (28%), India (25%) and Russia (5%).

Among the largest investors in the regions are China Investment Corporation, National Social Security Fund – China and Brazil private sector pension fund’s PETROS. China’s major sovereign wealth funds have recently increased their overseas private equity investments in order to diversify their investment portfolios. In the case of Brazil, local pension funds have played an active role in the development of the Brazilian private equity industry over the last decade, supporting first time and other local managers.

 

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