Emerging Asia private capital fundraising soars to $28bn in H1 2018

Emerging Asia-focused funds raised $6bn more in the first half of 2018 than the previous year, EMPEA data show.

Private capital fundraising in emerging Asia continues its upward trajectory, with private equity, venture capital, private credit, private infrastructure and real assets managers raising $28 billion in equity in the first half of 2018, almost 30 percent larger than H1 2017’s $22 billion, according to data published by global industry body Emerging Markets Private Equity Association.

Overall, emerging Asia-focused vehicles accounted for 88 percent of total fundraising across all global emerging markets in H1 2018, the report titled Industry Statistics 1H 2018 noted. Latin America-focused fundraising made up 6 percent; while Central and Eastern Europe was 1.6 percent; and MENA and Sub-Saharan Africa was 2.5 percent.

In terms of investment strategies, private equity made up the lion’s share of overall fundraising for emerging Asia at $23.9 billion, followed by private credit at $2.9 billion, and infrastructure and real assets at $991 million.

The largest funds closed in the region in H1 2018 include Carlyle Asia Partners V, which raised $6.55 billion in June, and Blackstone Capital Partners Asia Fund I, which collected $2.3 billion in the same month.

In terms of deal activity, emerging Asia funds allocated maximum capital to the financial services sector ($8.2 billion), followed by consumer services ($4.7 billion) and healthcare ($3.5 billion).

China, the largest market in Asia-Pacific in terms of total capital raised, also showed notable trends in deal activity, the report noted. Capital invested in China’s healthcare sector, for instance, grew across multiple segments. Investments in biotechnology and healthcare providers made up close to 70 percent or $1.3 billion of all total deals in the healthcare sector. Pharmaceuticals took up a share of 31 percent or $572 million, while investments in healthcare equipment were 11 percent or $20 million.