Emerging markets gain ground

Emerging markets are receiving an increasing share of private equity capital, with Asia remaining the standout market.

Emerging markets accounted for a greater share of the global private equity market in terms of both total capital raised and the total value of investments made, according to recent data from the Emerging Markets Private Equity Association (EMPEA).

The $16 billion raised by emerging markets-focused private equity funds in the first part of 2009 – while 55 percent less than the amount raised in the first part of last year – represents a jump of 5 percentage points in terms of global fundraising market share. Emerging markets funds accounted for 20 percent of the market, as of June 2009.

Investments in emerging markets have also gained market share, with nearly $27 billion invested across 391 deals during the first half of 2009. That represents 24 percent of all private equity investment during the period, up from 14 percent last year. Like fundraising, however, emerging markets deal volume has dropped by a little more than half compared to last year.

Emerging markets' share of global fundraising and investment totals stood at just 5 percent and 7 percent respectively in 2004.

Asia continues to lead the emerging markets; $11 billion was raised for Asia funds during the first part of 2009, equal to 69 percent of total new commitments made during the first half of 2009. China and India also continued to be the most active markets for investments, seeing 88 and 68 respective transactions.