BRIC-Focused Buyouts

by Nicholas Jelfs

  • 08 Nov 2010
  • PE

Over the past five years, 78 buyout funds have closed that primarily focus their investments in the BRIC countries. The most active fundraising year was 2007 in which 22 of the buyout funds closed, raising a total of USD 21.8 billion. The Preqin Funds in Market database shows that collectively across the period, a total of almost USD 70 billion was raised to invest in buyouts across the BRIC nations and other emerging markets.

One of the most significant of these funds was the Actis Emerging Markets III fund, which closed in December 2008 on USD 2.9 billion. The fund, which pursues opportunities across emerging markets, with a large focus on the BRIC countries, makes investments across a diversified range of industries and sectors along with regional co-investing side pools.

BRIC nation fundraising considerably dropped in the last two years, with seven funds closing in 2009 raising only 30% of the total capital raised in 2008 by BRIC-focused funds, and four vehicles achieving a final close this year having raised USD 4.6 billion. Turning to funds on the road, however, Preqin’s research shows that there are currently 25 funds actively seeking capital to invest principally across the BRIC countries, six of which have had a first close in 2010, displaying an approved attitude to investing in emerging markets going forward.

The funds currently on the road are collectively seeking to raise just over USD 15 billion. China still commands the most attention, with approximately a quarter of the total funds currently being raised focusing exclusively in the country, compared to only 3% being focused exclusively in India.

For more information on private equity fundraising, please see Preqin's Funds in Market product.

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