Emerging Market Private Equity Investing in the First Half of 2012

The Emerging Markets Private Equity Association has just released its private equity industry statistics for the first six months of 2012. In the first half of the year emerging market fundraising is on pace to be slightly lower than 2011. Several pan-regional funds had very large closes while funds investing in Latin America or Africa had a smaller share of the emerging market total.

Definition of Sub-Saharan Africa, according to...

Sub Saharan Africa

The story in Africa is one of deals closing amid a sluggish fundraising climate. Africa’s share of emerging market fundraising is down slightly in the first half of 2012. Meanwhile contrary to emerging markets as a whole, investments in Africa are on pace to increase in 2012 compared to 2011. One could speculate that there is excessive risk aversion towards Africa caused by concerns about institutional strength and political risk. Consequently general partners are finding a steady stream of deals in the pipeline and available funds are quickly invested. Given the growth potential in energy and other sectors and the urgent need for improvement in housing and all manner of infrastructure, there will be no shortage of potential deals to be constructed.

The African investment landscape suggests a need to better inform investors and assist them in evaluating and managing

 

Latin America and the Caribbean

 

Latin America & Caribbean

After a strong 2011 PE fundraising in Latin America has been much slower in 2012, though probably still ahead of the 2010 pace. 2011 was probably a bit inflated by a few large fundraises for Brazil.

Investment in the region also appears to be at a slower pace than in 2011. After a big year in 2010 investment fell in 2011 and this year looks weaker still. The weak global economy is probably a factor, but also the threat of nationalization in some countries has to be a cause for concern.

Brazil in contrast with the rest of the region is seeing healthy levels of investment in 2012 as investors see the country as investor-friendly and a decent long term bet despite the current slowdown in economic growth.

Advertisements
Tagged , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: