Featured Research
Private equity activity in the Middle East and North Africa (MENA) region slowed in 2009. Funds dedicated to MENA raised a total of US$1.1 billion in 2009, from a record high of US$6.9 billion raised in 2008. Investments were similarly sluggish in 2009, although falling less steeply, at US$2.2 billion (34 deals) from US$3.4 billion in 2008 (67 deals). While 2009 was a challenging year for private equity globally, a number of opportunities have emerged for private equity firms in the MENA region. The IMF estimates that collective GDP growth in the region will rise to 4% in 2010, up from 2.2% in 2009, due to an increase in oil production alongside ongoing heavy government spending. To address massive infrastructure requirements, governments are spearheading projects ranging from roads, ports and power, and are actively looking for private partners. Additionally, many family-run firms are turning to private equity as a substitute for increasingly scarce credit and expansion financing.
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Featured Industry News
Private equity investment in emerging markets totaled US$22 billion in 2009, reaching a record 26% share of global private equity investment activity. Fundraising for emerging markets private equity totaled US$23 billion in 2009, following global trends back to 2004/2005 levels. Detailed statistics are available to EMPEA members.
A total of 196 private equity (PE) funds focused on emerging markets raised US$22.6 billion in 2009, a 66% decline from the record-breaking US$66.5 billion raised by 210 funds in 2008. The decline in new fund commitments was on par with an estimated 65% decrease in fundraising in developed markets.
Emerging markets captured 26% of global private equity investment, versus only 7% in 2004, with US$22.1 billion invested across 674 deals. Falling transaction sizes contributed to a 54% drop in total investment value, while the number of PE transactions fell by only 11% in 2009. This compares to a 79% decrease in value and 50% fewer deals in developed markets.
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