Study: Asian fundraising rebounds

Institutional investors committing to emerging markets have been most keen on Asia and Latin America, according to the latest research from placement and advisory firm Probitas Partners.

Asian markets continue to take the lead among emerging economies in terms of investor interest, according to a survey from placement firm Probitas Partners.

Although still well below the levels of 2007 and 2008, fundraising for Asia in 2010, which totalled $29 billion, nearly doubled that of 2009, according to the Probitas Private Equity Deskbook 2011.

The research noted that while the private equity fundraising markets in North America and Europe experienced difficulties over the last three years in part due to “falling or stagnating” economies, private equity investors continued to seek growth investments in emerging markets, especially in Asia.

The Latin American market also experienced an uptick, reaching record fundraising levels last year of $5.6 billion.

“Fundraising for Asia and Latin America rebounded significantly in 2010 and is on track to continue strong in 2011,” the firm said in its report.

More specifically, the study noted that China and Brazil were the two most attractive emerging markets for institutional investors, with India and Southeast Asia following close behind. 

The reason for Asia as a whole being more attractive included its long-term GDP growth and economic performance over the last cycle, Probitas said. It also noted that of the “MIST” countries (Mexico, Indonesia, South Korea and Turkey) joining the BRIC countries as geographies of great interest to investors, four are in Asia.

PEI will take an in-depth look at Brazil's burgeoning private equity market in October at our PEI Brazil Forum.