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BRIC-Based Private Equity Fund Managers Considering a Venture Capital Strategy – June 2013

by Lisa Gan

  • 12 Jun 2013
  • PE

Currently, there are 535 BRIC-based private equity fund managers according to Preqin's Fund Manager Profiles service, 316 of which consider venture capital as part of their investment strategy. Collectively, BRIC-based fund managers that are interested in venture capital, either exclusively or as part of a wider investment strategy, have raised over $66bn in aggregate capital commitments over the last 10 years and have an estimated $30bn in dry powder available for investment. Given that the total capital raised in the BRIC region is almost $140bn, nearly 50% of aggregate capital raised in this region is by firms that pursue a venture capital strategy.
 
Examining a breakdown of the BRIC region by country, 149 fund managers that consider making venture capital investments are based in China, 91 in India, 39 in Brazil, and 37 in Russia. In terms of aggregate capital raised by BRIC-based firms in the last 10 years, China-based firms account for 70% of the aggregate capital raised by BRIC-based firms which consider venture capital investments; Russia has the lowest proportion, accounting for 7% of capital raised by these firms.

Out of the top 10 fund managers based in the BRIC-region which consider venture capital investments, in terms of highest amount of capital raised in the last 10 years, eight are based in China. The firm with the most capital raised is China-based CDH Investments, with $7bn in aggregate capital commitments over the last 10 years and roughly $2bn in available dry powder. Established in 2002, CDH focuses on growth and venture capital investments in a variety of industry sectors including internet, IT, new media, transportation, consumer and healthcare industries. Geographically, the firm prefers to invest primarily in China and occasionally abroad. CDH Investments has a head office in Beijing, with additional offices located in Shanghai, Shenzhen, Singapore and Indonesia. The second largest firm is IDG Capital Partners, with $3.7bn in aggregate capital commitments raised over the last 10 years and roughly $1.7bn available in dry powder. Founded in 1992, IDG focuses on technology-related venture capital investments in the internet, telecoms, digital media, healthcare and manufacturing sectors. With offices throughout China and Hong Kong, the firm is primarily focused on investing in China, but has previously considered investments in Hong Kong, US, and Europe.

The Brazil-based fund manager that considers venture capital investments with the most capital raised in the past 10 years is BTG Pactual. The firm has raised $1.5bn in the past decade and primarily targets investments in Brazil, but also considers those in Africa and emerging markets. In India, the largest fund manager interested in a venture strategy is ICICI Venture Funds Management, also having raised $1.5bn in the past decade for investments in India. The largest Russia-based fund manager which includes venture capital investments as part of a wider strategy is Russia Partners, which targets investments in Central & East Europe, having raised $1bn in the last 10 years. 

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