PEs in LatAm – how profitable?
There’s been no shortage of private equity interest in Latin America. Beyondbrics has written plenty about the trend (for example, here and here).
But what about those returns? How good of an investment has LatAm been for PE investors? It’s a tricky question given that both individual firms and industry associations are reluctant to give out returns data to the media. Continue reading »
South Africa: private equity eyes distressed assets
Private equity in Africa is on the up – so it was only a matter of time before investors started looking at the more extreme end of the market: distressed assets. Funds in South Africa are showing a keen interest in what is a new area, buoyed by a new law that helps to rescue ailing companies from the brink of collapse.
But are South African dealmakers fully equipped to handle what is considered to be a highly risky asset class? Continue reading »
PE in Brazil: record dealmaking, but what about an exit strategy?
2012 was another bumper year for private equity wheeling and dealing in Brazil.
While fund-raising cooled following a record 2010 and 2011, deal activity in Latin America’s biggest economy continued unabated. A total 147 deals, worth $5.7bn, were struck last year, an all time high, according to data from the Latin American Private Equity and Venture Capital Association (LAVCA).
But in the world of private equity, what goes in, must (eventually) come out. Given the stalled market in Brazil for initial public offerings over the last two years, will the returns live up to the hype? Continue reading »
PE group chickens out of India Nando’s deal
South African-based restaurant chain Nandos looked set to take flight in India, taking advantage of the nation’s booming restaurant scene and an emerging middle class with a well-developed taste for spicy food — and as a result attracting interest from international investors.
But now beyondbrics has learnt that an attempt by private equity group New Silk Route to acquire a majority stake in the group’s Indian franchise has fallen through — raising questions about Nando’s future expansion plans in Asia’s third largest economy. Continue reading »
Indian PE: eyes on the exit
Last September, the Indian government unveiled a reform agenda designed to build investor confidence. Foreign institutional investors have sent Indian stocks soaring in response.
But it seems private equity investors are more difficult to convince. Continue reading »
Chart of the week: the growth pains of EM private equity
By Andrew Bowman and Rob Minto
Private equity is back in the headlines with huge buyout bids planned for EE and Dell. But there’s also plenty of buzz in emerging markets, where the share of global private equity fundraising has quadrupled from 5 per cent in 2003 to 20 per cent last year.
Chart of the week looks at the highs and lows of private equity across the Brics and sub-Saharan Africa over the past decade, courtesy of data compiled by the Emerging Markets Private Equity Association. Continue reading »
Private equity in CEE: growing, but not as before
Photo: Bloomberg
Talk is all very nice, but the true measure of confidence is if someone invests cold, hard cash – and that does seem to be happening with central and eastern Europe in the case of fundraising being conducted by private equity funds. Continue reading »
Davos 2013: Abraaj looks forward to an Arab Summer
“Don’t be afraid of the Middle East.” That, in short, is the message of private equity investor Mustafa Abdel-Wadood at the World Economic Forum in Davos this week.
“Despite the headlines, there are a lot opportunities in the region,” Abdel-Wadood, whose Abraaj Group has $7.5bn EM assets under management, told beyondbrics. “It comes with challenges, and the perception may not always be positive, but our investments have done well.” Continue reading »
KKR: keener on Vietnam consumer
While some investors have gone sour on Vietnam amid a string of financial upheavals, stock market slides and poor economic data, one group which seems more optimistic than ever is KKR – at least on Vietnam’s manufacturing sector and the market for pungent fish sauce, chilli and soya sauces, instant coffee and noodles.
The US buyout group on Tuesday agreed to invest a further $200m in one of Vietnam’s largest food companies, Masan Consumer. The deal amounts to the biggest single private equity investment in Vietnam and follows KKR’s initial investment of $159m in Masan Consumer in 2011. Continue reading »
Private equity: the last frontier
A year ago, who would have thought Myanmar would be in the spotlight on the private equity stage? It turns out that those PE funds with an eye on geopolitics, are also seeing potential in the Middle East and north Africa in the wake of the Arab Spring . Continue reading »
PE in Brazil: cashing in on lack of language and other skills
There’s nothing like talking to private equity folk to get a positive take on a country’s problems. Take the level of English spoken in Brazil, for example. According to the UK-based emerging markets fund Actis, less than 3 per cent of Brazilians speak English fluently. For most international companies in the country, it’s just one more obstacle to doing business. For Actis, it’s a great chance to make money. Continue reading »
East Africa’s largest private equity fund Catalyst Principal Partners reached its final close last week, at $125m, writes Katrina Manson. It marks a growing pot of money chasing deals in the region whose nascent private equity industry has little record but is keen to make the most of a dearth of capital for a growth market of 200m people. Continue reading »
Private equity: due diligence in EMs
The greater the uncertainty, the more diligence is due. Yet, private equity companies believe the detective work they do before investing in the lesser-known environment of emerging markets isn’t good enough. A more integrated approach to due diligence is required in these regions than in developed markets.
That’s the conclusion of a survey of 50 private equity firms, which highlighted the extra risks in EMs: corruption, bribery, fraud, the power of the government and an unpredictable regulatory environment. Continue reading »
Baring Vostok closes $1.5bn fund
By Ben Aris of bne
At a time when most investors are clinging to their cash in anticipation of yet another financial firestorm, Baring Vostok Capital Partners, Russia’s leading private equity firm, has just raised $1.15bn for its fifth fund, Baring Vostok Private Equity V LP, and another $350m in a co-investment fund.
Private equity investment into Russia has never been particularly popular but when Baring Vostok goes to market, it has to turn investors away: the fund-raising had a hard cap at $1.5bn, says partner Michael Calvey, and was oversubscribed. Continue reading »
Actis, the UK-based emerging markets private equity company, on Tuesday confirmed it had closed a second African real estate fund totalling $278m.
It is nearly double the size of its first real estate Africa fund, which closed in 2006, and aims to catch the wave of urbanisation and rising middle class incomes in sub-Saharan Africa. Continue reading »
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