Data & Intelligence
In Case You Missed It: Emerging Markets Private Equity and Venture Capital Q1 2014 Overview
According to EMPEA’s latest industry statistics, private equity and venture capital firms raised US$6.5 billion across 41 emerging markets funds in the first quarter of 2014, a 20% decrease from the US$8.0 billion raised by the same number of funds in the first quarter of 2013. Investment activity, however, increased as fund managers deployed US$5.6 billion and completed 242 deals in Q1 2014, representing 46% and 13% increases in capital invested and number of deals, respectively, from Q1 2013.
Regional highlights from EMPEA’s Q1 2014 Data Insights:
- Capital invested in Q1 2014 in Emerging Asia increased 61% year-on-year, with India experiencing a slight uptick and investment in China increasing four-fold from Q1 2013.
- In the first quarter of 2014, fundraising for Emerging Asia declined 33% year-on-year to US$4.0 billion. Affinity Equity Partners’ fourth buyout fund, which raised US$1.3 billion in Q1 to reach a final close of US$3.8 billion, accounted for 32% of the capital raised in the quarter.
CEE and CIS
- CEE and CIS-focused private equity funds raised US$1.5 billion in Q1 2014, surpassing the fundraising total reached for all of 2013.
- Fund managers completed 33 investments across the region in Q1, a five-quarter high, but deployed only US$132 million, less than half the total capital invested in Q1 2013.
- In Q1 2014, private equity funds raised and capital invested declined 24% and 2%, respectively, year-on-year.
- Despite a decline in the number of growth capital investments in Q1, especially in Brazil, venture capital activity remained healthy, and Kaszek Ventures II, the largest venture capital fund raised for the region since EMPEA began tracking fundraising in 2006, held a US$135 million final close.
Middle East and North Africa (MENA)
- In the first quarter of 2014, private equity fund managers orchestrated six known liquidity events, including Swicorp-backed Sotipapier’s offering on the Tunis Stock Exchange in March, and Emerging Capital Partners (ECP)-backed Societe d’Articles Hygieniques’ January listing on the Tunis Stock Exchange, which returned a reported cash multiple of 2.4x to ECP.
- Apart from exits, private equity activity remained relatively subdued in Q1 2014, with just three disclosed investments and one fund close.
- Fundraising in Q1 2014, which totaled US$522 million, was driven mainly by the US$355 million interim close of Helios Investment Partners’ third regional fund. With The Carlyle Group’s debut Sub-Saharan Africa fund closing in early Q2, the region is on pace to surpass 2013 fundraising levels.
- East Africa, with eight deals across Kenya, Tanzania, Mozambique and Uganda, led private equity deal activity in Sub-Saharan Africa in Q1 2014. Three funds with East Africa remits also held closes in the quarter.
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 Co-Executive Chairman, 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