Preqin data demonstrates that there are currently 353 private equity vehicles on the road that have some degree of focus on investments in emerging markets and such vehicles are targeting an aggregate $126.6 billion. Of these funds, 204 focus exclusively on the emerging markets and are seeking aggregate capital commitments of $65.1 billion.
Venture funds are the most numerous types of funds targeting this region, with 87 vehicles seeking an aggregate $15.3 billion. However, buyout funds are targeting the largest percentage of capital commitments (27%), with 33 funds on the road looking to raise $17.8 billion. The biggest fund currently in market is GP Capital targeting RMB 20 billion (approximately USD 2.9 billion). The fund focuses on investments in the financial sector (mainly banks, brokerages, insurance companies, mutual fund firms and trust firms) of China. The fund manager, GP Capital, is a 50/50 joint venture between Shanghai International Group Co. and China International Capital Corp. (CICC). The second-largest fund on the road targeting investments in emerging markets is Ashmore Global Special Situations Fund V, which is seeking $2.5 billion in capital commitments, followed by Macquarie State Bank of India Infrastructure Fund, which is looking to raise $2 billion.
Data from Preqin’s Funds in Market product reveals that in 2010 YTD, 14 funds focused solely on emerging markets have held a final close raising an aggregate $8.2 billion. The largest emerging markets-focused fund to reach a final close in 2010 was Advent Latin American Fund V, which garnered commitments of $1.65 billion, exceeding its target of $1.5 billion by 10%. The fund focuses on control buyouts and expansion financings of companies across the Latin American region, investing mainly in Brazil, Mexico and Argentina.
For more information on private equity fundraising, please see Preqin’s Funds In Market product.