Sub-Saharan Africa private equity fundraising for the year 2010 closed at $1.49bn, as the region registered one of the fastest growth rates across the emerging markets, according research by the Emerging Markets Private Equity association (EMPEA).
The aggregate funds raised for the Sub-Saharan Africa region signaled a 56% year-on-year growth, out-pacing the majority of emerging markets regions, which suffered declining growth in funds raised.
Russia recorded the largest drop in growth, with fundraising plummeting -84% year-on-year, followed by the Middle East and Africa region which saw fundraising drop by -58%, while India, Emerging Asia and the collective Central and Eastern European region and Commonwealth of Independent States respectively declined by -11% -18% and -25%.
Brazil was the largest fundraiser in the emerging market pack, with funds growing by 169%, closely followed by the Latin American and Caribbean region at 149%. China saw its funds grow by 13% year-on-year.
“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,” said Sarah Alexander EMPEA’s chief executive officer.
Aggregate fundraising for the emerging market regions remained relatively flat at $23.5 billion, compared to $22.6 billion in 2009, with the figure making up 11%, of global fundraising. This is the highest level of global share the emerging markets regions have recorded, historically, according to EMPEA.
