Emerging Markets Private Equity Sees Record-Breaking Fundraising in 2005

Strategic Insights -

Emerging markets private equity sector saw a remarkable increase in fundraising in 2005, with a total of $US21 billion raised, nearly quadrupling the amount raised in 2004. This influx of capital was a significant trend at the annual private equity conference in Washington, co-hosted by the International Finance Corporation (IFC) and the Emerging Markets Private Equity Association (EMPEA). According to Sarah Alexander, executive director of EMPEA, 2005 was a record-breaking year, with expectations that similar fundraising numbers would be matched or exceeded in 2006.

Key Takeaways:

  • Fundraising for emerging markets private equity in 2005 reached a record high of $US21 billion, nearly quadrupling the amount raised in 2004.
  • The total amount raised in 2005 was more than four times the amount raised in 2003, indicating a significant growth trend in the sector.
  • The conference, attended by over 600 delegates from more than 60 countries, highlighted the increasing importance of private equity in emerging markets, particularly in the United States and Europe.
  • Haydee Celaya, IFC director for private equity and investment funds, emphasized that private equity professionals are breaking down borders and recognizing the impact of globalization on the private equity business.
  • The conference theme, "Frontier Markets - Where is the Smart Money Going and Why?", brought together experts from the global private equity industry, including managers of emerging-market funds, institutional investors, international development institutions, bankers, academics, and others.

Statistics:

  • $US21 billion: Total amount of private equity raised in emerging markets in 2005.
  • 4 times: Increase in fundraising for emerging markets private equity in 2005 compared to 2003.
  • 600: Number of delegates from over 60 countries who attended the annual private equity conference in Washington.
  • $US?: Amount raised in 2004 for emerging markets private equity (no specific figure provided).

Sources:

  • ASIA PULSE, May 14 (no date mentioned)
  • International Finance Corporation (IFC)
  • Emerging Markets Private Equity Association (EMPEA)