Preqin's Funds in Market service shows that there are currently 48 private equity funds of funds on the fundraising trail that target emerging markets. Collectively, these vehicles are seeking $13bn for investments into regions including BRIC countries, Africa and CEE. Fifty-four percent have held one or more interim closes, meaning that they have already reached the point where investments can be made from the fund. These have secured an aggregate total of $7.7bn in capital commitments so far.
The largest of these in terms of target size is West Strait Fund of Funds and GC Oriza Fund of Funds, which are both targeting CNY 5bn and managed by China-based firms. Forty percent of the private equity funds of funds targeting emerging regions are being raised by managers headquartered in the US, and 21% are by Chinese companies. West Strait Fund of Funds is Power Capital’s debut fund of funds vehicle and will exclusively target investment in China-focused growth funds. Its final close is expected for the end of 2013.
GC Oriza Fund of Funds invests in venture capital funds registered in China. It intends to invest in 20 to 30 funds during its lifetime, committing CNY 100mn to CNY 300mn to each opportunity. It aims to establish a diverse portfolio with a particular interest in emerging industries and growing small and medium sized enterprises, including those in the information technology, internet, consumer and service sectors.