Data & Intelligence
Year-End 2017 Global Private Capital Industry Statistics
Posted On: 20 Feb 2018
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Fundraising highlights from EMPEA’s Year-End 2017 Industry Statistics:
- The composition of fundraising by strategy has shifted as venture capital, infrastructure and private credit continue to gain ground. In line with long-developing trends, the growth equity share of capital raised by EM funds was just 25% over the most recent two-year period (2016-2017), compared to 41% in 2008-2009 and 51% in 2010-2011. Venture capital funds led an upturn in fundraising for first-time teams in 2017, especially in MENA, China and India.
- Private credit fundraising surpassed all previous years on record in 2017. GPs raised US$7.3 billion for EM private credit funds, beating the previous high of US$6.6 billion raised in 2015 and illustrating growing investor interest in credit-oriented strategies.
Investment highlights from EMPEA’s 2017 Year-End Industry Statistics:
- Consumer services led all other sectors for investment in 2017 at US$17.9 billion in disclosed capital invested, nearly triple the 2008 total. The two largest investments recorded in 2017—Hillhouse Capital Management and CDH Investments’ US$2.2 billion buyout of Belle International (China) and Mid Europa Partners, Cinven and Permira’s US$2 billion acquisition of Allegro (Poland)—were both in the e-commerce segment. Over the last decade, capital deployed in consumer services (inclusive of retail, media and travel) has risen at a faster rate than in any other industry category, surpassing both utilities (including power) and health care.
- Large transactions have accounted for a higher share of disclosed capital invested in growth and buyout deals in recent years. The share of middle-market investments in the US$25 million to US$100 million range, declined to 14% of disclosed capital invested in 2017, compared to one-third of all capital deployed in 2012.
Exit highlights from EMPEA’s 2017 Year-End Industry Statistics:
- In 2017, publicly disclosed exits via the public market route increased 29%, year-on-year, whereas strategic sales and secondary sales both declined by 29% and 21%, respectively. However, higher levels of global equity market volatility in 2018 may have an impact on fund managers’ plans going forward.
- Latin America and CEE & CIS stand out amid the public market exits revival of 2017. Fund managers completed public market exits for 14 Latin America-based companies, including 11 IPOs. Fund managers in Central & Eastern Europe followed suit, with 5 private capital-backed IPOs across exchanges in the United Kingdom, Poland, Hungary and Turkey.
Drew Guff | Managing Director and Founding Partner, Siguler Guff & Company
Dr. Andrew Kuper | Founder and CEO, LeapFrog Investments
Torbjorn Caesar | Senior Partner, Actis
Drew Guff | Managing Director & Founding Partner, Siguler Guff & Company
David Rubenstein | Co-Founder and Managing Director, The Carlyle Group