Buyouts recently completed its annual look at six of the hottest emerging private equity fund managers, based on prior reporting and interviews with LPs, placement agents and bankers. Although proven firms arguably carry less risk for investors, emerging managers allow limited partners to cement relationships with talented professionals at more favorable terms. One firm, for […]Continue
Emerging markets continue to be top of mind for both venture capitalists and private equity investors. In the January issue of Venture Capital Journal, we took a close look at four markets with increased VC/PE activity — the somewhat mature markets of China and India, as well as the new hot spots of Africa and […]Continue
(Reuters) – Private equity investment in emerging markets totalled $13 billion in the first half of 2010, a 55 percent leap on year-ago levels and on track to beat 2009 levels, industry group EMPEA said on Wednesday. An investment surge in Latin America and continued strong activity levels in China and India were behind the […]Continue
TORONTO (Reuters) – Canada Pension Plan Investment Board, one of the world’s largest private equity investors, may boost its exposure to emerging markets this year, a leading CPPIB executive said. In the past year CPPIB participated in C$7 billion ($6.66 billion) of new transactions – with 37 new investments in private assets – as it […]Continue
I’m reporting from the Private Equity Analyst Outlook Conference at the Grand Hyatt in New York. Raudline Etienne, Chief Investment Officer for the New York State Common Retirement Fund, fielded some difficult questions about the fund’s ban on placement agents. She explained how the NY State Common’s emerging managers program will resolve the dichotomy of banning placement agents but remaining committed to new, smaller funds, which, she said, often perform the best.
On emerging managers: “We looked at the ‘big boys’ in our portfolio, and it’s the early funds–funds one through three-that we made the most money on. So, in time we will identify the next generation of emerging managers to back.”
The moderator asked how the fund might reconcile that with its recent ban on placement agents, a result of the pay-for-play debacle that has played out since this summer. Young funds, with fewer resources to dedicate to fundraising, often need placement agents the most. Etienne said the firm has enacted an emerging manager program to avoid missing out on new, small funds that often needContinue
Morgan Stanley Investment Management has launched a program aimed at providing capital, advice and infrastructure solutions to emerging asset managers, with a particular emphasis on minority and women-owned asset managers.Continue
Law firm Nixon Peabody today brought some fresh blood into a leadership role in its investment funds practice. John Koeppel has been appointed from within the company to lead the group, succeeding Charley Jacobs, who remains in the firm’s fund formation group and continues to be involved in developing the firm’s Paris office. I spoke with Koeppel briefly about what’s keeping his group busy in a barren fundraising landscape.
What is keeping you busiest these days? I can’t imagine it’s fundraising. Or new fund formation for that matter.
We’re still counseling clients on timing for fundraising, and dealing with day-to-day regulatory things. A number of clients are active in the secondary market. We have a few looking to exit investments, and we have a few looking to grow their portfolios, and a few are looking to come out of their investments in early 2010, so we’re giving them the lead time to take to get out of those.Continue
SINGAPORE (Reuters) – Private equity investors expect to invest more money in emerging markets in the next five years with China and Brazil topping the list of favoured destinations, according to an industry survey released on Monday. Of 156 institutional investors polled, 78 percent plan to commit additional funds to emerging market private equity managers […]Continue
Reporting from the 21st Annual Buyouts East conference at the Grand Hyatt in New York, I bring you the highlights of this morning’s LP panel. In a lightening round, panelists were asked if they would back a first-time fund this year. Here are their answers:
Barry Gonder, Grove Street Advisors: Maybe. If it were a spin-out of a top tier manager who teamed up with some serial entrepreneurs, or a top decile manager.
Kevin Kester, Siguler Guff: Maybe. We have in the past, so if it it within out funds-of-funds strategies, such as BRIC or distressed, then yes.
Bill Walsh, Portfolio Advisors: Yes, we will probably do one or two. The host of those will be done through secondary deals, though.
Charlie Van Horne, Abbot Capital: No, unless it was a spin-out.
Other highlights from the panel, including the panelists’ thoughts on the New York pension pay-for-play scandal and GP/LP relations, after the jump.Continue
(Reuters) – Emerging market private equity hit a capital raising record in 2008 of $66.5 billion but now faces a more tenuous market because of the global economic slowdown, an industry survey said on Monday. The amount raised last year up 12 percent over the $59.1 billion raised in 2007, according to the Emerging Market […]Continue
NEW YORK (Reuters) – Emerging markets will likely remain a viable alternative for private-equity investors seeking returns during the deepening global financial crisis, according to an official with the International Finance Corporation. Emerging market economies are expected to still expand in 2009, said David Wilton, manager for private equity and investment funds at the IFC, […]Continue
The New York State Common Retirement Fund has selected Parish Capital and Bank of America to help it expand its emerging manager private equity portfolio, which targets funds with less than $750 million in assets under management. The system has allocated $350 million to Parish, with $250 million allocated to co-investments and the remaining $100 million allocated to fund investments. The system has allocated $200 million to Bank of America, all of which is to be used for fund investments. To date, the system’s emerging manager program has invested approximately $400 million.Continue
Emerging Capital Partners, a Washington, D.C.-based buyout firm that invests in African companies, has sold its minority stake in SOMDIAA SA, a producer of sugar, flour and animal feed in Central Africa, for $26 million. The firm’s investment, made in 2003, earned it a 2x return. Press release: Emerging Capital Partners (ECP), an international private […]Continue
BEIJING, Dec 1 (Reuters) – Private equity investor Actis has closed a new $2.9 billion global emerging markets fund, exceeding its initial target of $2.5 billion, the firm said on Monday. It said the fund, Actis Emerging Markets 3 (AEM3), had won commitments from a diversified group of 100 investors from across the globe, including […]Continue
Optimisim about emerging markets private equity appears to be continuing. EMPEA last week released its data tracking fundraising for emerging markets-dedicated private equity. 2006 saw 162 PE funds raise over $33 billion for emerging market regions, a 29% growth from 2005 levels of $26 billion and 5x the $6.5 billion raised in 2005. All regions witnessed at least double […]Continue
The world is flat indeed. PE funds targeting “emerging markets” surged last year, according to a new report by the Emerging Markets Private Equity Association. EMPEA says 162 PE funds focused on Asia, Eastern Europe, Latin America, the Middle East and Africa raised a little over $33B last year, up from about $26B raised by […]Continue
I wrote here yesterday that a seed-stage fund called MentorTech Ventures just closed its inaugural fund. This was done in the context of today’s jaunt down to Philly (I should leave soon, since my plane does), because MentorTech focuses primarily on IT and medical device companies that originate within the University of Pennsylvania. But it also […]Continue