Fundraising for Brazil, Russia, India and China (BRIC) focused private equity funds has started to pick up pace from the beginning of the year.
In 2013, $10.98 billion was raised for BRIC focused funds. The $2 billion RDIF Mubadala Co-investment Fund was the largest fund to close last year. However, much of this capital was committed by the Russian state, rather than by global institutional investors.
In the first quarter of 2014, Elbrus Capital Fund II was the largest fund to hold a final close at $550 million. The buyout fund targets Russia exclusively and closed above its target of $500 million. Credit Suisse and JP Morgan Asset Management are some of the LPs that have committed to the fund.
In Q2 YTD, 11 funds closed, raising almost as much capital as in Q1. AION Capital Partners Fund I (ICICI-Apollo), an Indian distressed fund, was the largest to close in the first two months of Q2. The fund surpassed its target of $750 million, raising $825 million. LPs that committed to the fund include Los Angeles City Employees' Retirement System and Apollo Global Management.
There are also many funds in market targeting the BRIC countries that are expected to close in coming months. Patria Brazilian Private Equity Fund V which launched in February 2 014 is expected to hold a $1 billion first close at the end of the month. The fund has a target of $1.5 billion and includes commitments from Teachers' Retirement System of Louisiana and El Paso Firemen & Policemen's Pension Fund. Brazilian fund Gávea Investment Fund V is also set to hold a final close in the coming weeks as PEI reported earlier. The fund has a target of $1.5 billion and is expected to raise between $1 billion and $1.5 billion. Kentucky Teachers’ Retirement System has committed $40 million to the fund.