Chart of the Week: Emerging Asia fundraising bounces back

Investor capital commitments to emerging Asia funds increases in 2014, but is still far below 2011 levels




Funds focusing on emerging Asia raised $15 billion from investors in 2014, an increase of 67 percent from the previous year’s haul.

The largest of these funds to close in 2014 was the CDH Fund V by CDH Investments, which received commitments from Alpinvest Partners, Asia Alternatives Management, GIC Private Limited, and the University of Michigan.

Of 2014’s capital raised, 67 percent was allocated to venture capital and growth strategies, with 20 percent going to buyout funds. The remaining capital was raised for distressed equity, debt related funds and fund of funds.

Whilst the capital raised in 2014 is an increase from the previous year, it is still 69 percent less than the amount raised by funds in 2011. 2011 was a stellar year for all emerging market funds, when many investors in both public and private equity increased allocations based on growth prospects.

Fundraising for the region will not be easy in 2015, considering that funds will have to compete with the robust returns from developed markets that have attracted LP interest of late.