VENTURES AFRICA – According to an official statement from the Emerging Market Private Equity Association (EMPEA), Arica recorded 7 percent of private equity investment deals in emerging markets despite a decreasing investment fundraise from China and India.
“In an environment that’s challenging for all investors globally, the belief that most of global growth will come from emerging markets continues to drive a significant share of global private equity capital to these economies,” said the founding President and CEO of EMPEA, Sarah Alexander in an official statement.
China which raised $11 billion in the first-half of 2011 recorded a dismal $4 billion from 12 funds within the same time this year due to the regulatory environment and unfavorable framework for fund withdrawal in China, causing investors to explore more emerging markets.
Out of 411 first-half closed deals compared to 460 within the same time the previous year, “emerging Asian markets continued to account for the majority of investment, representing nearly two-thirds of both total invested capital and number of deals. With 124 deals, China alone accounted for 40 percent of total investment and 30 percent of transactions.”
“Latin American markets including Brazil, and Emerging European markets including Turkey drew 12 percent and 8 percent of deals, respectively. Sub-Saharan Africa drew 7 percent of deals, while Russia accounted for 5 percent of transactions and the MENA markets represented 4 percent.”
Investor confidence in Africa is increasing, with last year recording the largest ever private equity funds being raised for the continent and average growth expected to reach 5.5 percent this year.
In 2011, 876 private equity and venture capital deals valued at $26.9 billion were completed in emerging markets.