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Emerging markets funds to surpass $33bn(3)

Emerging markets funds raised $21.5 billion in the first six months of the year, and are poised to surpass last year's total of $33.3 billion, according to data from the Emerging Markets Private Equity Association.

Fundraising for emerging markets funds this year is poised to surpass the $33.2 billion (€24 billion) raised by 162 funds last year, according to data released by the Emerging Markets Private Equity Association.

In the first six months of this year, 107 funds targeting emerging markets raised a total of $21.5 billion. An additional $7.7 billion was raised in July and August.

As they did last year, Asia-focussed funds accounted for the bulk of the fundraising; they made up $11.6 billion of the total $21.5 billion, and of the 21 Asian funds still in the market, three are each likely to raise more than $3 billion by the end of the year, the EMPEA estimates. Last year, Asia-focussed funds raised $19.4 billion of the $33.2 billion emerging markets funds.

Funds targeting Latin America raised $1.4 billion in the first six months of the year. The total does not include two, $1 billion-plus funds raised by Advent International and GP Investimentos this summer, the largest funds ever dedicated to the region. With the addition of those two funds, fundraising totals for the region have already surpassed the $2.7 billion raised for the region in 2006.

Funds for Africa raised $592 million in the first half of the year. Two more funds closed in July: Emerging Capital Partners’ $523 million pan-Africa fund and the $1.3 billion Pamodzi Resources Fund, Africa’s first fund to break the $1 billion mark, will bring the total year-to-date funds raised to $2.4 billion, equalling the total amount of capital raised for the region in all of 2006.

Funds targeting Central and Eastern Europe totaled $3.6 billion and funds targeting the Middle East raised $1.8 billion. In 2006, funds targeting these regions raised $3.3 billion and $2.9 billion, respectively. EMPEA reported that 60 additional funds are still raising $14 billion more for the region.