More than one-fifth of private equity investors in OECD countries have made commitments to emerging markets

by Joe Childs

  • 08 Dec 2009
  • PE

Preqin’s Investor Intelligence database shows that 22% of limited partners based in member countries of the Organisation for Economic Co-operation and Development (OECD) have previously invested in private equity funds targeting opportunities in emerging markets. Over 3,000 private equity investors are located in the 30 developed countries which make up the OECD, and approximately a quarter of these (26%) name emerging markets as an area of interest in the private equity asset class.

Public pension funds are the most prevalent of these institutional investors, representing just over 19% of OECD-country limited partners that look to gain exposure to private equity opportunities in emerging markets. Fund of funds managers make up approximately 16% of investors, while endowment plans and public sector pension funds comprise approximately 11% and 9% respectively. Family offices and foundations together represent almost 13% of such investors. Nearly half of these limited partners are based in the US, while 11% are located in the UK, 6% in Switzerland, 5% in Germany and 3% in Japan.

At just over 100, private equity investors in the BRIC (Brazil, Russia, India, China) economies are smaller in number than their OECD counterparts. Approximately 72% of limited partners based in these countries have previously invested in private equity funds targeting emerging markets, however, with a similar proportion (71%) of investors across all emerging markets having committed to such vehicles in the past. A quarter of investors located in the six member states of the Cooperation Council for the Arab States of the Gulf (GCC) have previously gained exposure to emerging markets through private equity funds, while Investor Intelligence shows that approximately 36% of limited partners in GCC-countries include emerging markets as an area of interest in the asset class.

For more information on institutional investors in private equity, please see Preqin’s Investor Intelligence database.

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