Preqin-新兴市场私募基金表现有所改善（英文）-2018.5-16页-3mb

Private Equity in Emerging Markets (May 2018)

Core Content Overview

The Preqin Special Report on Private Equity in Emerging Markets for May 2018 highlights the continued growth and development of the private equity sector in these regions, despite macroeconomic and geopolitical challenges. It provides insights into fundraising trends, performance metrics, deal activity, and investor behavior across different sub-regions.

Main Points

Fundraising Trends

• 2017 was a landmark year for emerging markets private equity, with $115bn raised, the second-highest in the last decade.
• The number of funds closed decreased by 250 compared to 2016, indicating a trend towards capital consolidation and larger fund sizes (from $240mn to $388mn).
• Emerging Asia continues to be the dominant region for fundraising, accounting for 86% of the total capital raised in 2014-2018.
• State-backed funds in China have played a significant role in increasing the AUM of emerging markets-focused funds.

Institutional Investors

• 16% of all private equity investors are based in emerging markets.
• Greater China is the largest contributor with 357 institutions, representing 31% of emerging markets-based investors.
• Corporate investors, banks, and investment companies are the largest groups of emerging markets-based investors.

Deal Activity and Performance

• Buyout deal activity remained robust in 2017, with a 17% increase in aggregate deal value despite a slight decrease in the number of deals.
• Venture capital in Emerging Asia continues to grow, representing 90% of all venture capital transactions in emerging markets in 2017, with a 26% increase in aggregate deal value.
• Median net IRRs for 2006-2015 vintage funds have remained above 8%, and top-quartile net IRRs have stayed above 20% for 2011-2015 vintages.
• In the first three quarters of 2017, aggregate capital distributed exceeded aggregate capital called up, suggesting a positive trend for future performance.

Outlook

• There are 970 emerging markets-focused private equity funds on the road, seeking $338bn in capital commitments.
• Emerging Asia continues to dominate, with 668 funds targeting $288bn.
• Growth strategies represent the largest share of capital targeted by emerging markets-focused funds (49%), compared to buyout vehicles (39%) in developed markets.
• 30% of investors plan to increase their allocation to emerging markets in 2018, with 51% favoring China as the top opportunity.

Key Figures

• Total AUM of emerging markets-focused funds increased by 33% between the end of 2016 and September 2017.
• 13 China-based funds with state involvement were closed in 2017, raising $42bn.
• Capital distributed in the first three quarters of 2017 exceeded capital called up.
• Top emerging markets-based fund managers by AUM include:
  • SINO-IC Capital ($22.6bn)
  • China Reform Fund Management ($20.2bn)
  • CCT Fund Management ($19.6bn)
  • China Aerospace Investment Holdings ($17.4bn)
  • Russian Direct Investment Fund ($14.8bn)

Regional Highlights

Africa

• Venture capital dominates deal activity, with 90% of venture capital deals in 2017 located in Emerging Asia.
• Venture capital deals in Africa have seen a 26% increase in aggregate value from 2016 to 2017.
• Top venture capital deals in Africa include:
  • Africa Internet Group ($375mn)
  • Takealot Online ($960mn)
  • Off-Grid Electric Tanzania ($55mn)

Central & Eastern Europe

• Buyout deals in Central & Eastern Europe have seen a 17% increase in aggregate value from 2016 to 2017.
• Top buyout deals include:
  • Allegro Group ($3,253mn)
  • Zabka Polska ($1,100mn)
  • PJSC Polyus ($700mn)
  • Profi Rom Food Group ($533mn)
  • Russian Helicopters ($300mn)

Emerging Asia

• Buyout deals in Emerging Asia have seen a 17% increase in aggregate value from 2016 to 2017.

• Top buyout deals include:

  • Belle International Holdings Limited ($53,100mn)
  • McDonald's Outlets in China and Hong Kong ($2,100mn)
  • Woori Bank Co., Ltd ($2,400mn)
  • Axis Bank Limited ($116,260mn)
  • HDFC ($111,040mn)

• Venture capital deals in Emerging Asia have seen a 26% increase in aggregate value from 2016 to 2017.

• Top venture capital deals include:

  • Didi Chuxing ($5,500mn)
  • Ant Financial Services Group ($4,500mn)
  • Didi Chuxing ($4,000mn)

Latin America

• Latin America has raised $47bn since 2008, the second-highest total among emerging regions.
• However, its share of annual emerging markets fundraising has decreased from 11% in 2011 to 2-3% since 2015.

Middle East

• The Middle East has seen a decline in fundraising interest, possibly due to geopolitical risks.

Key Insights

• Emerging Asia remains the primary focus for private equity investment, with a significant share of both fundraising and deal activity.
• State-backed funds in China have been instrumental in increasing the AUM of emerging markets-focused funds.
• Fund of funds and growth strategies are becoming more popular among investors in emerging markets.
• Investor confidence in emerging markets is on the rise, with many planning to increase or maintain their allocations in 2018.
• The performance of emerging markets-focused funds continues to be attractive, with median net IRRs above 8% and top-quartile net IRRs above 20%.

Conclusion

The private equity landscape in emerging markets is evolving, with a clear focus on Emerging Asia, driven by state-backed funds and increased AUM. Despite macroeconomic and geopolitical challenges, the sector continues to attract significant capital and deliver strong returns, with growth strategies and venture capital being the most prominent. The future outlook is positive, with many investors planning to increase their allocations to emerging markets in 2018.