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Private Equity Funds of Funds in Market Seeking Exposure to Emerging Markets – April 2015

by Andrew White

  • 15 Apr 2015
  • PE

Preqin’s Funds in Market online service currently tracks 159 fund of funds vehicles that are seeking investor capital, 39 of which include exposure to emerging markets as part of their investment strategies. These funds are targeting an aggregate $7.6bn in commitments from investors, $2.7bn of which has already been raised. 

As shown in the chart above, the majority of funds of funds in market seeking exposure to emerging markets are targeting less than $300mn, with almost a quarter of the tracked funds seeking total capital commitments of $50mn or less. The two funds of funds with the largest target sizes are Asia Alternatives Capital Partners IV and Northgate V, both of which had initial targets of $750mn. 

Asia Alternatives Capital Partners IV is managed by fund of funds manager Asia Alternatives Management, which is headquartered in Hong Kong. The vehicle has already exceeded its target size and is expected to hold a final close on approximately $950mn. The fund seeks to invest with private equity fund managers investing across Asia, including China, Taiwan, Hong Kong, Japan and Korea, targeting buyout, growth, venture capital and special situations vehicles. 

Northgate V, managed by Northgate Capital, invests in a wide range of geographies and fund types, gaining exposure to emerging markets through venture capital and growth funds in Asia and throughout Latin America. 

The fund of funds vehicle with the smallest target size is Xi An Ou Qing Jin Quan Investment Partners, which has a target of $10mn. The vehicle only invests in funds that target companies within the clean technology industry in China. It is one of six funds of funds in market managed by TS First Fortune Asset Management, which has total private equity assets under management of $322mn. The firm’s six funds of funds currently fundraising solely invest in vehicles that target Chinese industries.

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