Emerging markets private equity fundraising in 2008 is on pace to eclipse the total raised last year, according to an industry group.
The Emerging Markets Private Equity Association says that 104 p.e. firms raised US$35.3 billion in the first six months of this year, representing a 68% increase from US$21 billion over the same period of 2007.
Fundraising by U.S.-focused p.e. firms is down 3% in the first half of 2008 compared with a year ago at US$133 billion, awhile European fundraising rose 16% to US$61 billion. Funds focused on emerging Asian countries excluding Japan, Australia, and New Zealand raised a total of US$26.3bn, more than double the US$11.6 billion in the same period last year.
“Fundraising results for the first half of 2008 bode well for the industry but don't tell the whole story,” said Sarah Alexander, president of EMPEA. “Institutional investors weighing their future allocations will be looking closely to see how quickly and how well this growing pool of capital gets deployed. As fund sizes continue to grow, investors need to see that these markets present sufficient opportunities to absorb this capital.”