Industry Newsroom

Alternatives Firms Hike Emerging Markets Investments in First Half of Year

By Arleen Jacobius – 23 August 2017

Private equity, infrastructure and private credit firms invested $22 billion in emerging markets in the six months ended June 30, up 26% from investments made in the first half of 2016 and the highest half-year total since 2008, when $18 billion was invested, according to EMPEA industry data released Wednesday.

An increase in deals in emerging Asia helped to drive the increase, with $16.6 billion invested in the six months ended June 30, compared with $35 billion in all of 2016, according to the industry group formerly known as the Emerging Markets Private Equity Association. (Emerging Asia excludes Australia, Japan and New Zealand.)

First-half fundraising for emerging markets alternative investment firms increased 46% to $23 billion as of June 30. During the period, KKR & Co. closed the $9.3 billion KKR Asian Fund III, a buyout fund that is the largest emerging markets fund tracked by EMPEA.

Methodology changes in the most recent data include Afghanistan and Pakistan as part of Asia rather than the Middle East and North Africa region.