Funds inflows into private equity in sub-Saharan Africa including South Africa (SSA) were $156 million in the first quarter of 2011, according to research by the Emerging Markets Private Equity association (www.empea.net). This is lower than the equivalent rate over the full year 2010 and a small proportion of the total $10.2 billion raised in the first quarter for funds dedicated to emerging markets (43% of the amount raised in all of 2010). Emerging Asia raised $9.5bn (93% of the Q1 total) and China-focused funds accounted for $5.4 bn of the total.
For the year 2010, private equity fundraising for Sub-Saharan Africa totalled $1.49 bn and the region saw one of the fastest growth rates in emerging markets, reports EMPEA. Aggregate funds raised was up 56% on 2009, while most emerging markets regions raised less funds, according to a report on website, www.privateequityafrica.com.
Brazil saw the biggest increase among emerging markets, with funds up by 169%, followed by Latin American and Caribbean region at 149%. China saw its funds grow by 13% year-on-year. Russia was down 84%, Middle East and Africa down 58%, India was down 11%, Emerging Asia down 18% and the collective Central and Eastern European region 25%).
Sarah Alexander EMPEA’s chief executive officer, commented: “While China and India will continue to anchor many investors’ portfolios, perhaps more than at any other time in recent history LPs are ready to entertain strategies that include markets previously seen as too risky or shallow, such as Latin America, Sub-Saharan Africa or Southeast Asia.”
Aggregate fundraising for the emerging market regions remained relatively flat at $23.5 bn, compared to $22.6 bn in 2009, and emerging markets were 11% of global fundraising. EMPEA says this is the highest share of global funds yet achieved by emerging markets private equity fund raising.privatequity10504_pe_tablesempea