Is MINT the new BRIC for Private Equity Fundraising? - January 2014

by Stuart Hunter

  • 15 Jan 2014
  • PE

A new sub-set of countries has emerged with some anticipation that they will experience growth, similar to that of the BRIC countries, but over the course of the next 20 years. Mexico, Indonesia, Nigeria and Turkey are the four emerging markets which make up the MINT acronym. Preqin’s Fund Manager Profiles online service shows that there are a number of private equity firms actively seeking opportunities across this economic region. Currently, 36 private equity firms focus solely on opportunities arising in at least one of these countries. 

Preqin’s Funds in Market online service shows that there are currently 17 exclusively MINT-focused funds in market, collectively seeking to raise just under $2bn in capital commitments. Of these funds, seven focus on Mexico, six on Turkey, three on Indonesia and one on Nigeria. The majority of the capital being sought originates from fund managers located in the MINT countries themselves, with 12 funds being raised by MINT-based firms accounting for 64% of capital targeted. The largest MINT-focused fund currently in market, Turkish Growth and Innovation Fund of Funds, is seeking to raise €250mn in capital commitments. The fund is managed by European Investment Fund and the Small and Medium Enterprises Development Organisation of Turkey, and aims to stimulate growth and innovation primarily in Turkey. 

Analysis by fund type shows that growth funds account for the highest proportion of capital being sought, with four funds aiming to collect an aggregate $630mn. Funds of funds account for the second highest amount of targeted capital, with two such vehicles targeting an aggregate of $320mn, while the six funds aiming to collect $180mn make venture capital the most common fund type. 

Since 2009, the number of MINT-focused funds that have reached a final close, and the aggregate capital they have collectively raised, has increased in consecutive years, rising from six funds collecting a total of $400mn in 2009 to 12 funds garnering $3.4bn in 2012. However, 2013 experienced a significant decline with just six funds managing to collect a total of $1.4bn. 

Despite the region being recognized as having strong potential for growth over the next 20 years, it is still uncertain at this stage whether private equity investors will be progressively drawn to investment opportunities arising out of the MINT economies. 

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