Chart of the Week: Emerging Market based Funds in Market

Managers based in emerging markets account for a sizeable chunk of the infrastructure funds in market

Emerging Market based Funds in Market 

 

cow 200 x 200 emerging market manager
  

 Managers based in emerging markets represent a sizeable chunk of the infrastructure funds that are currently in the market for capital, suggesting that they feel that they can compete with GPs from developed markets.

Infrastructure Investor’s Research and Analytics team currently profiles 185 unlisted infrastructure funds in market, which have a combined target size of $127.85 billion. As the chart illustrates, GPs based in emerging markets are targeting 15 percent ($19.57 billion) of this total, which is equivalent to 42 infrastructure funds out of the total 185 that are currently in market.

By contrast, 33 funds were being raised by emerging market GPs of a total of 173 unlisted infrastructure funds as of March 31st 2013. The 42 funds portion which we are seeing now is therefore a rise of 4 percent increase in the space of just five months. A similar theme for private equity funds has been noticed by our team too. When backing a GP, LPs have cited on many occasions that the background and experience of a GP is the most important factor for them when making an investment. It is therefore apparent that LPs are increasingly investing with locally based GPs who have local knowledge in order to tap into emerging markets.

India is the most active emerging market in terms of the number of funds being raised. 14 India-based funds are currently in market with a combined target size of $8.2 billion. Brazil is also active, with 8 funds currently in market and a combined target of $4.5 billion. It is worth noting that out of these 24 Indian or Brazilian funds in market, 22 are targeting investments solely in domestic projects. This might  reflect an appetite amongst institutional investors for emerging market infrastructure. 

Sample Funds in Market based in emerging markets 

 

Fund
Name
GP
Name
Country
HQ
Target
($m)
Investment
Focus
AmKonzen Asia Water Fund  AmInvestment
Group
 
 
Malaysia  200  Asia-Pacific 
Astra Infrastructure
Fund
 
Astra
Investimentos
 
 
Brazil  1,000  Latin America 
Hinduja Group
Infrastructure Fund
 
Hinduja
Group
 
 
India  500  Asia-Pacific 
IDB Infrastructure
Fund II
 
Emerging Markets
Partnership (Bahrain)
 
Bahrain  2,000  Asia-Pacific, Central & Eastern Europe,
Middle East / Africa