Emerging Market Fund Managers Invest USD22 Billion in Deals: H1 2017
EMPEA, August 2017 – Capital deployed in EM transactions by Fund Managers represents the highest half-year total since EMPEA began reporting on EM investments in 2008. Private capital fund managers, encompassing private equity, infrastructure and private credit funds, invested US$22 billion in disclosed deals in emerging markets in the first six months of 2017.
Fundraising for emerging markets-focused capital funds also rebounded in the first half of 2017 to US$23 billion, up from US$18 billion in 1H 2016. International limited partners have put more capital to work in EM in recent as the search for yield continues. Barak, being focused on Africa with its perceived premiums as well as continuing its USD-investments, has seen a strong uptick of inflows from many developed investor regions in 2017. Most notably, these regions have been the Nordics, Asia, the Middle East, and the U.S.
EMPEA further reported that Sector-specific mandated funds gained ground on the fundraising trail, and garnered the largest share of overall capital raised (23% in 1H 2017) ever recorded by EMPEA. This inclination from investors to target specific industries suggests are more educated understanding of the markets, which is increasingly important for the likes of the industries in which its funds operate across African commodities and trade. The feedback is a growing bench of experienced fund managers operating in emerging economies with sector expertise – Barak’s continued company strategy and competitive advantage.
As Barak has continued along its strong path of growth throughout 2017, it has continued to diversify its sector focus and although remains committed to agricultural, food and food-related commodities, there are new sectors in which a keen interest has been taken. The current deal pipeline across Africa reflects a lot of these new sectors, with a relatively new one being the power and renewable energy space. EMPEA reports that while utility-scale plants continue to attract the largest tickets, investor interests are also committing to off-grid and micro generation assets.