Data & Intelligence
1H 2018 Global Private Capital Industry Statistics
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Regional and country highlights from EMPEA’s 1H 2018 Industry Statistics include:
- Latin America – In the absence of large regional growth and buyout funds, the majority of capital raised in the first half of 2018 accrued to two overlapping pools: private credit vehicles and BRL-denominated, Brazil-focused funds. Both specialist fund managers and new entrants to the asset class raised US$989 million for special situations, distressed debt and mezzanine vehicles, capitalizing on increased LP appetite for private credit. While overall fundraising for Latin America was below last year’s pace—perhaps reflecting continued concerns over the outcome of presidential elections in the region and their implications for investors—private credit and Brazil-focused fundraising are both on track to reach multi-year highs.
- CEE & CIS –Although capital invested in CEE and CIS declined by 40%, year-on-year, in 1H 2018, fund managers have been increasingly successful in finding exit channels in the region. The initial public offering of Czech Republic-based AVAST Software in May marked the largest disclosed exit via public markets in the region in 1H 2018. CVC Capital Partners and Summit Partners disposed of shares worth US$226 million as part of the US$817 million offering on the London Stock Exchange. The exit highlights the region’s strengths in pure-play software & computer services, which has garnered a higher percentage of capital invested (5.9%) and overall deal count (16%) since 2008 than in all other EM regions.
- Sub-Saharan Africa – As a share of private capital activity, venture capital (VC) deals soared to 22% of total capital invested in Sub-Saharan Africa in the first half of 2018. While this shift is partially due to declines in buyout and growth deals, disclosed capital deployed via VC deals in 1H 2018 has already surpassed last year’s total by 64%. In particular, technology startups in the region have raised late-stage funding at an unprecedented pace: at US$103 million in disclosed investment, late-stage VC investment in Sub-Saharan Africa surpassed all previous annual totals.
- MENA – Despite public concerns over corporate governance in the Middle East, the region continues to present new opportunities for investment. Gulf Capital’s US$267 million buyout of Saudi Arabia-based fintech company Geidea in May was the largest disclosed private capital deal completed in MENA since 2016—and the largest investment ever recorded for the country. The deal highlights the opportunities within Saudi Arabia’s fintech and enterprise services space at a time when the government is keen to diversify the economy and attract foreign investment.
- Emerging Asia – Reflecting the pattern of commitments over the past few years, Emerging Asia-focused vehicles drove the increase in overall EM fundraising, led by the US$6.55 billion final close of Carlyle Asia Partners V in June. As the second-largest fund ever raised for Emerging Asia, Carlyle’s latest regional fund follows a recent trend in which the region’s largest franchises have amassed increasingly greater commitments to subsequent vehicles. Funds of US$1 billion or more accounted for most of the growth in regional fundraising from 2015 to 2017, and LP appetite for Emerging Asia shows no signs of abating: Asian markets took the top three spots in a ranking of market attractiveness in EMPEA’s 2018 Global Limited Partners Survey.
Renuka Ramnath | Founder, Managing Director & Chief Executive Officer, Multiples Alternate Asset Management Private Limited
Brian Lim | Partner and Head of Asia and Emerging Markets, Pantheon Ventures
David Rubenstein | Co-Founder and Managing Director, The Carlyle Group
Dr. Andrew Kuper | Founder and CEO, LeapFrog Investments
Torbjorn Caesar | Senior Partner, Actis
Drew Guff | Managing Director & Founding Partner, Siguler Guff & Company