Following on from the $11.2bn final close of Warburg Pincus Private Equity XI on 10th May 2013, the largest balanced fund to launch and close since January 2008, this blog will explore the balanced funds currently in market. Balanced funds invest across all private equity investment stages. According to Preqin's Funds in Market service, there are 18 balanced funds in market targeting an aggregate $3.1bn in capital commitments.
The three largest balanced funds in market are Asia Development Fund, Pharos Capital Partners III and African Agriculture Fund, which are collectively targeting 45% of the aggregate target capital for funds in market.
Asia Development Fund, managed by Singapore-based Makara Capital Partners, invests in global companies that are looking to base their operations in Singapore as a strategic hub and have access to core markets such as India, China and other ASEAN countries. It has a target size of SGD 888mn ($718mn) to invest across a broad range of industries.
Pharos Capital Group is raising the Pharos Capital Partners III fund, which has a $400mn target and focuses on healthcare and business service sectors. The fund either makes buyouts, recapitalizations or growth investments.
African Agriculture Fund is a private equity fund designed to respond to the food crisis that severely impacted the continent of Africa in 2008. The fund is targeting $300mn and had a first close in 2010. Phatisa Group is the fund manager for the African Agriculture Fund.
Since the beginning of 2013, three balanced funds have closed raising an aggregate $11.8bn. Ninety-five percent of this capital has been garnered from Warburg Pincus Private Equity XI. The fund, managed by Warburg Pincus, makes a variety of venture capital, growth, buyout and special situation investments across a diversified range of sectors and geographies.
Eight balanced funds closed in 2012, raising a combined $3.7bn, the largest being the Capital International Private Equity Fund VI, which raised $3bn. Capital International is the fund manager for this fifth fund in the series, which raised 33% more capital than its predecessor. It targets growth equity and control buyout investments in emerging markets, including Latin America, Asia and Eastern Europe. It also considers select transactions in the Middle East and Africa.