emerging markets

private equity

fundraising & investment review | 2009

Emerging Markets Private Equity Association

April 2010
 About EMPEA

The Emerging Markets Private Equity Association (EMPEA) is an Profile of EMPEA’s Membership
independent, member-based global industry association that pro-
motes greater understanding of and a more favorable climate Headquarter Region
for private equity and venture capital investing in the emerging CEE & CIS, 5%
markets of Africa, Asia, Central/Eastern Europe and Russia, Latin MENA, 7%
America, and the Middle East.
LatAm &
Caribbean, 9% North America, 34%
EMPEA was founded in 2004 with the belief that private equity can
be a critical driver of economic growth in emerging markets while
simultaneously generating strong returns for investors. Africa, 12%

In support of its mission, EMPEA:

Asia, 14%
Western Europe, 19%
• Researches, analyzes and disseminates authoritative global
information on emerging markets private equity;
• Convenes meetings and conferences around the world; Firm Type
• Offers professional development programs including monthly 3%, Others
webcasts; and
13%, Service
• Collaborates with stakeholders from across the globe.
Providers

EMPEA’s members represent more than 80 countries and over

$500 billion in assets under management.
23%, Limited 61%, General
Partners Partners

1055 Thomas Jefferson Street, NW • Suite 650 • Washington, DC 20007

Phone: +1.202.333.8171 • Fax: +1.202.333.3162 • E-mail: info@empea.net • Web: empea.net

Data and analysis presented in EMPEA publications is derived from EMPEA’s proprietary industry data-
base, FundLink, made possible with generous support from the following institutions: CDC Group plc,
Development Bank of South Africa (DBSA), DEG and Netherlands Development Finance Company (FMO).
We gratefully acknowledge their contributions.

2 | EM PE 2009 Fundraising and Investment Review

 Contents

Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2009 Fundraising and Investment Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Fundraising
Fundraising By Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Profile of Funds With Closes in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Fund Sizes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Largest EM PE Funds Raised to Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Investment
Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Investments by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Investment Concentration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Profile of Deals in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Deal Sizes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
PE Penetration in Emerging Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Emerging Markets Private Equity Funds with Closes in 2009

Sub-Saharan African Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Asian Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
CEE/CIS Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Latin American & Caribbean Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
MENA Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Multi-Region Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

EM PE 2009 Fundraising and Investment Review | 3

 Methodology

This report provides an overview of trends in fundraising and
investment among private equity funds investing in the emerging
markets of Asia, Central and Eastern Europe (CEE)/Common-
wealth of Independent States (CIS), Latin America, the Middle
East and North Africa (MENA) and Sub-Saharan Africa. The sta-
tistics presented here are drawn from EMPEA’s database of funds
and are based on data from press releases and trade publica-
tions as well as communications with industry participants and
regional and local venture capital associations.
Fundraising totals reported herein reflect only official closes
(first, second and/or final) as reported in public sources and
by the firms themselves. Capital commitments accruing prior to
or between official closes are not included in the totals. Invest-
ment totals included in the report reflect total equity amounts
for transactions in which financial details have been reported. For
both fundraising and investment data, amounts have been con-
firmed wherever possible through information provided by the
fund managers themselves.
The statistics in this report are based on the “market” approach,
i.e., EMPEA categorizes funds based on the countries or regions
in which fund managers intend to invest. In the case of global
funds, only those funds investing primarily in emerging markets
are included in the totals (e.g., pan-Asia funds with a significant
portion of capital intended for investment in China and India).
Statistics in this publication exclude real estate funds and
funds-of-funds, although EMPEA does track these vehicles. Infra-
structure funds managed by private equity firms and making
private equity-style investments are included in this analysis (i.e.,
equity investments in infrastructure-related industries). Infrastruc-
ture investments that fit the conventional model, i.e., greenfield
projects and/or project finance, are not included.
Data and analysis presented in this publication is derived from
EMPEA’s proprietary industry database, Fundlink, which is made pos-
sible with generous support from the following institutions: CDC,
DBSA, DEG and FMO. We gratefully acknowledge their contributions.
EMPEA would also like to acknowledge the information provided
by a number of excellent partners and industry sources: AltAssets,
Asia Private Equity Review, Asian Venture Capital Journal, Brazilian
Private Equity and Venture Capital Association, European Bank
for Reconstruction and Development, European Venture Capital
Association, Center for Private Equity and Venture Capital Stud-
ies at FGV-EAESP, International Finance Corporation, InvestIQ,
Mexican Private Equity Association, Preqin, Private Equity Inter-
national, South African Venture Capital Association, VCCircle,
Venture Intelligence, Zawya and Zero2IPO.

Regions in this report are defined as:

• Asia: all Asia, excluding funds whose primary mandate is invest-

ments in Japan, Australia or New Zealand.

• Latin America & Caribbean (LatAm & Carib.): Includes Central and
South America and the Caribbean region (excluding Puerto Rico).

• Central & Eastern Europe (CEE) & Commonwealth of Indepen-

dent States (CIS): European Union accession countries, Turkey,
the Baltics and Balkans, as well as Commonwealth of Indepen-
dent States (CIS) countries, including Russia.

• Middle East and North Africa (MENA): Gulf Cooperation Coun-

cil (GCC), Afghanistan, Iran, Iraq, Jordan, Lebanon, Pakistan,
Palestinian Territories, Syria and Yemen, as well as Algeria,
Egypt, Libya, Morocco, Sudan and Tunisia.

• Sub-Saharan Africa: all Africa, excluding funds whose primary

mandate is investments in North Africa (Algeria, Egypt, Libya,
Morocco, Sudan and Tunisia).

Disclaimer: This information is intended to provide an indication of industry activity based on best information available from public and proprie-
tary sources. EMPEA has taken measures to validate the information presented herein but cannot guarantee the ultimate accuracy or completeness
of the data provided. EMPEA is not responsible for any decision made or action taken based on information drawn from this report.

4 | EM PE 2009 Fundraising and Investment Review

 Summary

2009 Fundraising & Investment Summary

2009 will be remembered as one of the most challenging years EM PE Fundraising & Investment, 2004–2009 (US$B)
on record for the private equity industry. Fundraising plummeted
Capital
globally—the decline in new emerging market fund commitments Funds Raised % Annual Invested % Annual
was on par with the decrease in developed markets in percentage (US$B) Change (US$B) Change
terms. A total of 196 private equity (PE) funds focused on emerg- 2004 6.6 43% 7.2 3%
ing markets raised US$22.6 billion in 2009, a 66% decline from
2005 26.5 303% 11.8 64%
the record-breaking US$66.5 billion raised by 210 funds in 2008.
2006 33.2 25% 34.7 194%

Raising capital from Western institutions will continue to prove 2007 59.2 78% 53.1 53%
challenging until institutional investors see liquidity from the large 2008 66.5 12% 47.8 -10%
buyout commitments that represent the bulk of their PE exposure. 2009 22.6 -66% 22.1 -54%
That said, the first quarter of 2010 has yielded some encouraging
signs that investors are returning to the market. Provided that cash
flow pressures continue to ease, valuations continue a reasonable
trajectory and exit markets resume, EMPEA expects more vigorous EM PE Fundraising & Investment, 2004–2009 (US$B)
levels of activity in emerging markets in 2010.
$70 67

Investment in 2009 activity was comparatively robust relative to Funds Raised 59

$60
developed markets. Emerging markets captured 26% of global pri- Capital Invested 53
vate equity investment, a significant increase from a 7% share in 48
$50
2004. Overall transaction volumes in emerging markets were only US$ Billions
slightly depressed, with 674 deals totaling US$22.1 billion in 2009, $40 35
a 54% fall in value but only an 11% drop by number of transactions. 33
$30 27
23 22
$20
12
$10 7 7

$0

2004 2005 2006 2007 2008 2009

EM PE Fundraising & Investment as a Percent of Global Total, 2004-2009 (%)

30%
26
25% Funds Raised, % Global
Capital Invested, % Global
% of Global Total, US$B

20% 19

15% 14
12
11
10
10% 9 9
8
7 7

5% 4

0%

2004 2005 2006 2007 2008 2009

EM PE 2009 Fundraising and Investment Review | 5

 Fundraising

Fundraising by Region
EM PE Fundraising Totals by Region, 2004–2009 EM PE Fundraising Totals by Region, 2004–2009
(US$B) (US$m) Sub-
Emerging CEE LatAm & Saharan
$40
Asia & CIS Caribbean MENA Africa
$35 2004 $2,800 $1,777 $714 $326 $340
2005 $15,446 $2,711 $1,272 $2,669 $791
$30
2006 $19,386 $3,272 $2,656 $3,207 $2,092
US$ Billions

$25 2007 $28,668 $14,629 $4,419 $5,333 $2,034

$20 2008 $39,660 $5,559 $4,461 $6,875 $2,241

2009 $15,938 $1,586 $2,248 $1,070 $964
$15
Δ 2008–2009 -60% -71% -50% -84% -57%
$10

$5

$0
Emerging CEE & CIS LatAm & MENA Sub- Multi-
Asia Caribbean Saharan region
Africa
2004 2005 2006 2007 2008 2009

The slowdown in fundraising spanned all markets and regions, from a 50% decline in funds raised for Latin America, to an 84% decrease in
new commitments to Middle East/North Africa-dedicated funds. Emerging Asia fund commitments fell 60%, but their share of total capital
raised grew from 60% in 2008 to 71% in 2009.

EM PE Fundraising Totals by Region and Value, EM PE Fundraising Totals, Country-Dedicated

2004–2009 (% of Total) Funds, Select Markets, 2004–2009 (US$m)
100% 4 Brazil Russia/CIS India China
9 8 7 4
14 12
90% 3 5 2004 480 200 706 311
5 6 3
5 3 9
80% 10 10 10
10 2005 158 1,254 2,741 2,243
7
% of Total Value, US$B

11 7
70% 5 8 7 2006 2,098 222 2,884 4,279
10 10 25 8
60% 2007 2,510 1,790 4,569 3,890
27
50% 2008 3,589 880 7,710 14,461

40% 2009 401 455 3,999 6,617

71
60 Δ 2008–2009 -89% -48% -48% -54%
30% 58 58
48
20% 34

10%
0%
2004 2005 2006 2007 2008 2009

Emerging Asia LatAm & Caribbean Sub-Saharan Africa

CEE & CIS MENA Multi-region

Emerging Asia’s ascendancy continued in 2009, drawing 71% of capital raised, up from only 34% of total fundraising in 2004. This grow-
ing share is attributable to the larger sizes of many pan-Asian and China- or India-dedicated funds relative to other markets, as well as the
continued proliferation of new funds. The share of new commitments raised by funds focused on Central and Eastern European and CIS
markets has declined over the same period, falling from 27% of capital raised in 2004 to only 7% in 2009.

China-dedicated funds accounted for US$6.6 billion of the US$15.9 billion raised for Emerging Asia. China funds’ share of fundraising grew
from 22% of the emerging markets total in 2008 to 29% in 2009. India-dedicated funds raised US$4 billion in 2009, or 18% of the total.
As a group, funds focused on the BRIC markets accounted for US$11.5 billion raised versus US$26.6 billion in 2008.

6 | EM PE 2009 Fundraising and Investment Review

 Fundraising

Profile of Funds with Closes in 2009

Stage of EM PE Funds with Final Closes by Number Stage of EM PE Funds with Final Closes by
of Funds, 2009 (No. of funds, US$m) Number of Funds, 2007–2009 (%)
(2, $290) (2, $149) 100% 4 1 4
5
(5,$434) 3 5
90%

% of Total Number of Funds

80% 24
36 29
70%
(11, $6,274) 60%
50% 40
(48, $9,166)
40%
42 50
30%
(28, $2,150) 20%
29
10%
15 11
0%
2007 2008 2009
Growth/Expansion Mezzanine
Buyout Venture Capital Other*
Venture Capital Distressed Debt/Special Situations
Growth/Expansion Mezzanine
Buyout Microfinance
*Other includes Distressed Debt/Special Situations and
Microfinance funds

Growth capital opportunities accounted for an even larger share of strategies among funds with final closes in 2009, representing 50%
of the sample, versus 42% in 2008. Venture capital funds continue to represent a significant portion of the market, accounting for 29% of
funds with final closes (but only 11% of capital raised).

While 2007 and 2008 saw the emergence of a number of multi-region and Asian funds focused on buyout transactions, i.e., control trans-
actions of mature companies rather than take-privates or the heavily levered transactions common in Western markets, 2009 was, not
surprisingly, a challenging year for buyout funds. Funds with a buyout focus accounted for only 11% of funds reaching a final close in 2009.

The majority of funds continue to approach emerging markets with

a generalist strategy, focusing on a basket of the most promising Sector Focus of EM PE Funds with Final Closes,
sectors given the size of transactions sought. Funds with a sin- 2009 (No. of Funds)
gle sector focus—e.g., infrastructure, natural resources, financial
services—was slightly less prominent in 2009. While sector spe-
cialist funds accounted for 34% of funds reaching a final close in 1 1
2007, that number dropped to 30% in 2008 and only 24% in 2009.
Among specialist funds in the 2009 sample, technology was the 4
most prevalent focus sector. 23, Specialist
13
While each fund’s strategy is tailored to its investment environ- 73, Generalist 4
ment—e.g., consumer opportunities in China, agribusiness
in Brazil, telecom or financial services in Sub-Saharan Africa—
a number of sectors appear in fund strategies across the globe.
These include technology, manufacturing, consumer opportuni-
TMT (Technology, Media, Telecom)
ties, telecommunications, and energy.
Infrastructure
Clean Technology
Most Prevalent Sector Strategies among EM PE
Generalist Funds, 2009 Agribusiness
Banking & Financial Services
Technology
Industrials & Manufacturing Note: Analysis excludes real estate funds.

Consumer
Media & Telecom
Energy & Natural Resources

Analysis by stage and sector reflects funds achieving a final close in the year indicated. Of the 196 funds holding closes in 2009, 96 funds reached a final close.

EM PE 2009 Fundraising and Investment Review | 7

 Fundraising

Fund Sizes
The trend towards US$1 billion-plus funds began to slow in the latter Size Distribution of EM PE Funds with Final Closes
half of 2008. Funds reaching a final close at US$500 million or more by Number of Funds, 2007–2009 (%)
accounted for only 9% of the 2009 sample, versus 23% in 2008 and
100% 4
in 2007. 11
14 5
90% 9
Funds under US$250 million (i.e., making equity investments rang- 9 12

% of Total Number of Funds

80%
ing from US$10–30 million) represented 81% of the sample in 2009,
70% 14 23
versus only 54% of the sample in 2007. The smaller size funds being 23
raised for emerging markets reflect adaptation to lower entry valu- 60%
ations, although the healthy rebound in listed equities may spill into 50% 29
“hot market” valuations once more. The first few months of 2010 indi-
40% 25
cate that appetite for name brand US$1 billion+ funds may once again
be on the rise, particularly for those markets most attractive to LPs, 30% 58
namely Asia and Latin America. 20%
34
29
Average funds sizes in 2009 fell by half, driven both by the disap- 10%
pearance of large funds and the rise of more modestly sized vehicles 0%
reflective of GP expectations of lower entry valuations. Median fund 2007 2008 2009
sizes fell by 42% in 2009, from US$143 million in 2008 to US$83 million.
<US$100m US$500m-US$999m
The 10 largest funds closed in 2009 accounted for 37% of the total US$100m-US$249m >US$1 billion
capital raised. Asian funds held 6 of the 10 slots, with India-dedicated US$250m-US$499m
funds taking #4, #6 and #9 rankings. Only 3 of the top 10 funds
closed at more than US$1 billion, versus 10 of 10 in 2008.

Size Distribution Among EM PE Funds with Final Closes, 2007–2009 Median Size of EM PE Funds with
2007 2008 2009
Final Closes, 2007–2009 (US$m)
Total Total Total $250
No. of Capital No. of Capital No. of Capital
Funds Raised Funds Raised Funds Raised 200
$200
(US$m) (US$m) (US$m)
US$ millions

<US$100m 35 1,382 47 1,949 56 2,457 143

$150
US$100m-US$249m 30 4,852 40 5,790 22 3,147
US$250m-US$499m 27 9,373 20 7,234 9 3,022 $100 83

US$500m-US$999m 11 6,497 16 10,042 5 3,530

$50
>US$1 billion 17 34,620 15 29,390 4 6,306
TOTAL 120 56,724 138 54,405 96 18,461 $0
2007 2008 2009

Ten Largest Emerging Markets-Focused PE Funds with Final Closes, 2009

Geographic Total Capital
Fund Manager Fund Name Fund Type Focus Raised (US$m)
MBK Partners MBK Partners II Buyout Pan-Asia $1,600
CITIC Private Equity Funds Management Co. CITIC Mianyang Private Equity Fund Growth/Expansion China $1,318
The Carlyle Group Carlyle Asia Growth Partners IV Growth/Expansion Pan-Asia $1,040
IDFC Project Equity India Infrastructure Fund (IIF) Growth/Expansion India $927
Actis Actis Infrastructure 2 Buyout Multi-region $751
India Value Fund Advisors Private Ltd. India Value Fund IV Growth/Expansion India $725
Siguler Guff & Company, LLC Russia Partners III Growth/Expansion Russia $627
The Carlyle Group Carlyle MENA Partners Buyout MENA $500
Jacob Ballas Capital India New York Life Investment Management India Fund III Growth/Expansion India $440
Sub-Saharan
Development Partners International African Development Partners I Growth/Expansion $416
Africa

Analysis of fund sizes reflects those funds achieving a final close in the year indicated. Of the 196 funds holding closes in 2009, 96 funds reached a final close.

8 | EM PE 2009 Fundraising and Investment Review

 Fundraising

Largest EM PE Funds Raised to Date

Half of the 26 largest funds raised to date (as of 31 December
2009) dedicated to emerging markets PE investment have been
US$1 billion or greater. The Emerging Asian market boasts the
largest funds of all, with the largest 5 funds raised as of December
2009 each topping the US$2 billion mark. In Sub-Saharan Africa,
fundraising has yet to breach the US$1 billion threshold, although
a number of African funds in the market in the early months of
2010 are poised to break fundraising records. As of April 2010, the
Latin American record had been broken by Advent International’s
US$1.65 billion close.

Largest EM PE Funds Raised to Date by Region (Closed Funds)

Emerging Asia
Vintage Fund Size
Fund Manager Fund Name Year Fund Type Geographic Focus (US$B)
Texas Pacific Group Capital TPG Asia V 2008 Buyout Asia $4.3
CVC Capital Partners CVC Capital Partners Asia Pacific Fund III 2008 Buyout Asia $4.1
Kohlberg Kravis Roberts & Co. KKR Asian Fund 2007 Buyout Asia $4.0
Bohai Industrial Investment Fund Mgmt. Bohai Industry Investment Fund 2006 Growth/Expansion China $2.9
Affinity Equity Partners Affinity Asia Pacific Fund III 2007 Buyout Asia $2.8
*The Bohai IIF is included in EMPEA's industry statistics under the 2006 methodology, but more recent Chinese state-backed funds, like Tianjin Shipping IIF
(US$2.9B) and Shanghai Financial IIF (US$2.9B), are not included in EMPEA's industry statistics under 2009 methodology.

CEE & CIS

Vintage Fund Size
Fund Manager Fund Name Year Fund Type Geographic Focus (US$m)
Mid Europa Partners Mid Europa Fund III 2007 Buyout Central Europe $2,100
Advent International Advent Central & Eastern Europe IV 2008 Buyout CEE, Ukraine $1,574
Baring Vostok Capital Partners Baring Vostok Private Equity Fund IV 2007 Buyout Russia, CIS $1,100
Enterprise Investors Polish Enterprise Fund VI 2006 Buyout CEE $836
PineBridge Investments PineBridge New Europe Partners II 2007 Growth/Expansion CEE $709

Latin America & Caribbean

Vintage Fund Size
Fund Manager Fund Name Year Fund Type Geographic Focus (US$m)
Gavea Investimentos GIF III 2008 Buyout Brazil $1,302
GP Investments GP Capital Partners IV 2007 Growth/Expansion Brazil $1,300
Advent International Latin American Private Equity Fund IV 2007 Buyout Latin America $1,300
AIG-GE Capital Latin American
EMP Global 1996 Infrastructure Latin America $1,010
Infrastructure Fund
Gavea Investimentos GIF II 2007 Buyout Brazil $778

Middle East & North Africa (MENA)

Vintage Fund Size
Fund Manager Fund Name Year Fund Type Geographic Focus (US$m)
Abraaj Capital Infrastructure and Growth Capital Fund 2007 Buyout MENASA $2,000
Swicorp Swicorp Joussour Fund 2006 Buyout MENA $712
EFG-Hermes Private Equity Horus Private Equity Fund III 2007 Buyout MENA $580
Gulf Capital GC Equity Partners Fund II 2008 Buyout MENA $533
Abraaj Capital Abraaj Buyout Fund II 2005 Buyout MENASA $500
The Carlyle Group Carlyle MENA Partners 2007 Buyout MENA $500

Sub-Saharan Africa
Vintage Fund Size
Fund Manager Fund Name Year Fund Type Geographic Focus (US$m)
Brait Private Equity Brait IV 2006 Buyout South Africa $880
Ethos Private Equity Ethos Private Equity Fund V 2006 Buyout South Africa $750
Emerging Capital Partners ECP Africa Fund II 2005 Growth/Expansion Pan-Africa $523
Lereko Metier Capital Lereko Metier Capital Growth Fund 2006 Growth/Expansion Southern Africa $500
Kingdom Zephyr Africa Mgmt. Company Pan-African Investment Partners II 2008 Growth/Expansion Pan-Africa $492

EM PE 2009 Fundraising and Investment Review | 9

 Investment

Investment Overview
In 2009, emerging markets captured US$22.1 billion in PE EM PE Deal Volume by Quarter, 2008–2009
investment across 674 deals. Falling transaction sizes contrib- (US$B, No. of deals) 250
uted to a 54% drop in total investment value, while the number
$16
of PE transactions fell by only 11%. This compares to a 79% 203
13.5 13.2 191 200
decrease in value and 50% fewer deals in developed markets. $14 190 189
$12 194
Unlike in 2008, with investment levels fairly even across all four 182 10.2
11.0 150

US$ Billions

No. of Deals
$10
quarters, the sharp drop in investment levels during the first 141 8.6
139
quarter of 2009 (a 65% single quarter decrease) is indicative of $8
100
the myriad challenges facing investors. The pace of investments
$6 5.1
picked up slightly in the latter two quarters of 2009, representing 4.4
3.9
60% of the year’s transactions and 62% of total value. $4 50
$2
Six of the 10 largest investments in 2009 in Emerging Asian mar-
$0 0
kets took place in China, with noteworthy deals in the automotive
and financial services sectors. Outside of Asia, few deals exceeded Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2008 2008 2008 2009 2009 2009 2009
US$1 billion in 2009, with notable exceptions being CVC Capital
Partner’s purchase of the Central European operations of brewer
Deal value No. of deals
Anheuser-Busch InBev for US$1.2 billion, and Cairo-based Citadel
Capital’s acquisition of Egyptian Refining Company in October.

Largest Known Private Equity Investments in Emerging Asia, 2009

Investment
Fund Manager, Investment Amount Investment
Co-investors Company Name Country Sector Type (US$) Date
Hopu Investment Mgmt., Temasek China Construction Bank China Financial Services PIPE 4,600 May-09
Kohlberg Kravis Roberts & Co. Oriental Brewery South Korea Food & Beverage Buyout 800 May-09
(KKR), Affinity Equity Partners
First Reserve Corporation KrisEnergy Singapore Oil & Gas Buyout 500 Sep-09
Bohai Industrial Investment Chery Automobile China Automotive Growth/Exp. 425 Jun-09
Fund-led consortium
Northstar Pacific Partners PT Delta Dunia Petroindo Tbk Indonesia Mining Growth/Exp. 408 Nov-09
Hopu Investment Management China Pacific Insurance (Group) Co. Ltd. China Insurance PIPE 400 Dec-09
Northstar Pacific Partners PT Bakrie & Brothers Tbk Indonesia Infrastructure Growth/Exp. 384 Jan-09
Hopu Investment Management Bank of China China Financial Services PIPE 375 Jan-09
Goldman Sachs Private Equity Geely Automobile Holdings China Automotive Growth/Exp. 334 Sep-09
NewMargin Ventures Chongqing Tongli Heavy Duty Machine Mfg. China Industrial Growth/Exp. 293 Nov-09

Largest Known Private Equity Investments in Emerging Markets ex-Asia, 2009

Investment
Fund Manager, Investment Amount Investment
Co-investors Company Name Country Sector Type (US$) Date
CVC Capital Partners Anheuser-Busch InBev (StarBev) Czech Republic Food & Beverage Buyout 1,231 Oct-09
Citadel Capital Egyptian Refining Company Egypt Oil & Gas Growth/Exp. 1,000 Oct-09
Abraaj Capital Karachi Electric Supply Company (KESC) Pakistan Utilities Buyout 361 Apr-09
Helios Investment Partners, Albright
Capital Mgmt., Soros Strategic Part- Helios Towers Africa (HTA) Nigeria Telecom. Growth/Exp. 350 Nov-09
ners LP, RIT Capital Partners
EQT Partners (EQT Funds Mgmt.) CableTel & Eurocom Cable Mgmt. Bulgaria Cable TV Buyout 292 Oct-09
Ethos Private Equity, Old Mutual Idwala Industrial Holdings South Africa Metals Buyout 291 Jan-09
Private Equity (South Africa)
HSBC, Is Private Equity Havas Ground Handling Turkey Infrastructure Growth/Exp. 263 Oct-09
The Carlyle Group CVC Brasil Brazil Consumer Buyout 250 Dec-09
Actis Commercial International Bank (CIB) Egypt Banking Buyout 244 Jul-09
TA Associates AVG Technologies Czech Republic Technology Growth/Exp. 200 Oct-09

Note: The Hopu/Temasek US$4.6B PIPE transaction is not included in EMPEA’s aggregate totals for EM PE investment in 2009 due to its outlier size and the lack of
verified information on final transaction amount and equity stake awarded to Hopu.

10 | EM PE 2009 Fundraising and Investment Review

 Investment

Investment by Region
EM PE Investment Totals by Region, 2004–2009 Overall investment volume decreased in every region, attributable
(US$B) to the decline in transactions and sliding valuations. Investment
$35 levels in Emerging Asia dropped by 51% versus 2008, but deal
activity measured by number of transactions fell by only 5%.
$30
The slowdown in investment volume was equally pronounced out-
side of Asia, with deal volume falling 34%, 48%, 52% and 81% in
$25
MENA, CEE, Sub-Saharan Africa and Latin America, respectively.
However, transaction volume by number remained comparatively
US$ Billions

$20 strong, with transactions ex-Emerging Asia down 21%, versus a

drop by 50% or more in developed private equity markets.
$15

$10
EM PE Investment by Region and Value,
2004–2009 (% of Total)
$5 100%
4 6 6 6
16 15 5
90% 7 7 10
$0 1 12
4 6
80% 8
14 15

% of Total Capital Invested

Emerging CEE & CIS LatAm & MENA Sub-Saharan 9
Asia Caribbean Africa 70% 14 15
7
14 16 13
2004 2005 2006 2007 2008 2009 60%

50%
EM PE Investment Totals by Region, 2004–2009
40%
(US$m)
Sub- 65 65 63
30% 60
Emerging CEE & LatAm & Saharan 57 59
Asia CIS Caribbean MENA Africa
20%
2004 $4,316 $986 $609 $137 $1,154
10%
2005 $7,692 $842 $1,015 $524 $1,723
2006 $22,468 $4,903 $4,264 $1,751 $1,292 0%

2007 $30,370 $8,345 $7,545 $3,526 $3,362 2004 2005 2006 2007 2008 2009

2008 $28,270 $6,344 $6,962 $3,370 $2,889

Emerging Asia MENA
2009 $13,867 $3,323 $1,318 $2,214 $1,383
CEE & CIS Sub-Saharan Africa
Δ 2008–2009 -51% -48% -81% -34% -52% LatAm & Caribbean

Emerging Asia PE Investment by Value,

2008–2009 (% of Total) Emerging Asian markets captured 63% of investments by value,
and 70% of emerging market private equity transactions by num-
100% ber in 2009, with China accounting for US$6.3 billion and India
13 China capturing US$4 billion. Robust activity in Emerging Asia offset
90% 20
India declines in other markets.
80% 13 Southeast Asia
% of Total Capital Invested

70% Other* Within Asia, China’s share of investment activity grew, from 32%
22
to 45% of value (rising from 44% to 49% of transactions). India
60% 29 captured a larger share of investment volume ($), rising from 26%
50%
to 29%, but a slightly smaller proportion of transactions, falling
26 from 41% to 37%. This suggests slightly higher deal values on aver-
40% age in India relative to China in 2009.
30%
45
20%
32
10% *Other includes Mongolia,
South Korea and Taiwan
0%
2008 2009
N=500 N=473

EM PE 2009 Fundraising and Investment Review | 11

 Investment

Investment Concentration
EM PE Investment Concentration by Value, 2009 (US$m, Number of Deals)
$989 (20)
Capital Invested
Country (US$m) No. of Deals
Brazil $989 20
China $6,288 233
India $4,011 176
$6,288 (233)
$9,851 (204) Russia/CIS $217 20
South Africa $748 21
BRICSA Total $12,253 470
EM Total $22,104 674
$4,011 (176)
BRICSA % of EM Total 55% 70%

$748 (21)
$217 (20)

Brazil Russia/CIS
A handful of markets accounted for more than half (55%) of
capital invested and a staggering 70% of transactions com-
China South Africa
pleted in 2009. Most notably, China and India alone counted
India Other EM Countries
509 deals between them, or 61% of the total, and US$10.2 bil-
lion, or 47% of total capital invested. Brazil, Russia and South
Africa each represented 3% of transactions and between 1 and
4% of total investment volume ($).

EM PE Investment Totals for Select Markets, 2004–2009 (US$m)

Brazil Russia/CIS India China South Africa
2004 $120 $240 $1,272 $1,389 $1,154
2005 $474 $240 $1,377 $2,991 $774
2006 $1,342 $402 $5,687 $8,200 $895
2007 $5,285 $805 $9,905 $9,458 $3,362
2008 $3,020 $2,647 $7,483 $8,994 $2,019
2009 $989 $217 $4,011 $6,288 N/A
Δ 2008–2009 -67% -92% -46% -30% N/A

12 | EM PE 2009 Fundraising and Investment Review

 Investment

Profile of Deals in 2009

Emerging markets private equity investments continued to be pri- such as Brazil where multi-generational family-owned companies
marily growth capital, with two-thirds (67%) of transactions in are more prevalent, change of control transactions are increasingly
2009 falling into this category versus 55% in 2008. feasible as the market’s understanding of the value of a private
equity partner becomes clearer, helped in part by the successful
Buyouts, i.e., a complete transfer of equity ownership, remain listings of several private equity-backed companies on the Bovespa.
few in number and were all the scarcer in 2009. Only 11% of the
2009 sample could be termed buyout transactions, versus 19% in
2008. The so-called Equity Buyout model (EBO) is gaining popular-
ity among Western-focused managers suddenly forced to adapt
EM PE Investment Stage Breakdown by
Number of Deals, 2008–2009 (%)
to a world without leverage, but in emerging markets, all-equity
transactions remain the norm rather than the exception. 100% 4 5
90% 11
In 2008 and 2009, PIPE (private investment in public equities) 19

% of Total Number of Deals

Growth/Expansion
80%
transactions became more prevalent in a handful of countries 17 Venture Capital
— most notably India. By 2009, PIPE deals accounted for 10% of 70%
22 Buyout
Indian PE transactions. Though venture capital deals in China and 60%
PIPE
India fell in 2009 as a percentage of PE deals, venture capital is still 50%
a vibrant and integral sector of both PE markets, thanks to their 40%
67
highly educated and skilled workforce and well-developed entre-
30% 55
preneurial cultures.
20%
The dearth of buyout transactions in China and India is a reflection 10%
of markets that, generally speaking, lack sufficiently mature com- 0%
panies or industries appropriate for a buyout strategy. In markets 2008 2009
N=319 N=674

EM PE Investment Stage Breakdown by Number of Deals, 2008–2009 (%)

3
100% 2 Growth/Expansion
8 5 1 8 10
90% 15 2 1
15 Venture Capital
% of Total Number of Deals

21 10
80% 33 Buyout
70% 36
PIPE
13 37
60%
50%
80 80
40%
58 63
30% 53
47
20% *Analysis based on sample of
transactions for which invest-
10% ment stage is verifiable.
0%
2008 Brazil 2009 2008 China 2009 2008 India 2009
N=24 N=20 N=62 N=233 N=83 N=176

EM PE Investment Sector Breakdown by Value, 2009 In 2009, the consumer sector and infrastructure gained in prom-
(US$m, No. of Deals) inence. Industrial and manufacturing companies continue to draw
($666, 28) the greatest share of capital across the emerging markets, repre-
($1,595, 136)
senting US$5.7 billion or roughly one-quarter (26%) of the total
value in 2009. Companies in the energy and natural resources
Industrials & Manufacturing
space, and consumer sector companies followed, with 18% and
Energy & Natural Resources
($2,169,
($5,742, 132)
15% of the total by value, respectively.
44) Consumer
Infrastructure Agribusiness is emerging as a distinct sector of interest, mov-
($2,315, 78)
Media & Telecom ing from US$436 million in 2008 to US$666 million in 2009, the
($3,981, 58) Banking & Financial Services only sector drawing an increase in investment ($) year over year.
($2,362,
60) Technology
Agribusiness
($3,276, 138)

EM PE 2009 Fundraising and Investment Review | 13

 Investment

Deal Sizes
Average Size of EM PE Investments by Region,
2008–2009 (US$m)
$180
$160 2008 156 Average Size of EM PE Investments by
148 Region, 2008–2009 (US$m)*
$140 2009 136
Region 2008 2009 Δ 2008–2009
$120
US$ millions

Emerging Asia 63 37 -41%

$100 92
86 CEE/CIS 92 68 -26%
$80 77
63 68 LatAm & Caribbean 156 49 -69%
$60
49 49 45 MENA 136 148 9%
$40 37
Sub-Saharan Africa 136 49 -64%
$20 Emerging Markets 77 45 -41%
$0 *For transactions with disclosed investment values
Emerging CEE/CIS LatAm & MENA Sub-Saharan Emerging
Asia Caribbean Africa Markets

Average deal sizes fell in 2009 in every region with the exception of MENA, with the overall drop for emerging markets from US$77
million to US$45 million, a decrease of 41%. Perhaps more telling, however, is the shift in median deal sizes, which decreased 38%
in emerging markets overall, from US$20 million to US$13 million. The shift in median deal size was most pronounced in MENA and
Latin America, which each saw a 62% decline (whereas the average MENA deal value actually increased by 9%). Emerging Asia, Sub-
Saharan Africa and CEE/CIS markets saw median deal amounts fall by 39%, 38% and 25%, respectively.

Median Size of EM PE Investments by Region,

2008–2009 (US$m)
$200

$180 2nd & 3rd

Quartile Range
$160 (w/ median)

$140 2008 2009

Median Size of EM PE Investments by
$120 Region, 2008–2009 (US$m)*
US$ millions

$100 Region 2008 2009 Δ 2008–2009

Emerging Asia 18 11 -39%
$80
78
70 CEE/CIS 20 15 -25%
$60
LatAm & Caribbean 78 30 -62%
$40 MENA 70 27 -62%
30 30
27 Sub-Saharan Africa 30 19 -38%
$20 18 20 20
15 19 13 Emerging Markets 20 13 -37%
11
$0 *For transactions with disclosed investment values
Emerging CEE/CIS LatAm & MENA Sub-Saharan Emerging
Asia Caribbean Africa Markets

An analysis of deal size distributions shows that the range in transaction sizes varies widely by market, with the middle two quartiles sig-
nificantly tighter in Emerging Asia, and with MENA in particular demonstrating the broadest range. The range in deal sizes in Sub-Saharan
African markets compressed dramatically in 2009, evidence of the disappearance of very large transactions from more developed private
equity markets like South Africa.

14 | EM PE 2009 Fundraising and Investment Review

 Investment

PE Penetration in Emerging Markets

2009 was an anomaly year by any estimation, marked by dra- in the United States at 1.42% of GDP and in the UK at 1.06%; most
matic slowdowns in even the most developed PE markets. emerging markets were well under one-half of one percent of GDP
However, even in a bad year for PE, the United Kingdom and in 2008.
the United States each boasted PE penetration (as measured by
investment ($) relative to GDP) of 0.30% or better, with Israel’s In a challenging year around the world for private equity, the
as high as 0.52%, thanks to one of the world’s most robust ven- emerging markets grabbed a larger share of global PE investment
ture capital industries. than ever before, with 26% of the total versus only 7% in 2004.
The level of investment activity in 2009 indicates that managers
By contrast, only India and South Africa approached Western mar- of flexible pools of capital (i.e., global funds) saw greater oppor-
ket penetration levels, with 0.32% and 0.27%, respectively. China tunities in emerging markets than elsewhere. Additionally, the
saw investment in 2009 totaling only 0.13% of GDP. When pen- growth capital orientation of the emerging markets PE model,
etration levels at PE’s peak in 2008 are taken into account, the where leverage is seldom requisite to a transaction, translated to a
penetration gap becomes more pronounced, with PE investment greater proportion of a shrinking global total.

EM PE Investment as Percentage of GDP, 2009 (%)

1.6%
1.42
1.4%

1.2%
PE Investment/GDP(%)

2008
1.03 1.06
2009
1.0%

0.8%
0.62
0.6%
0.52
0.40 0.38
0.4% 0.34 0.32 0.30 0.29 0.32
0.27 0.27
0.21 0.21
0.2% 0.15 0.17 0.16
0.13 0.15 0.11
0.08 0.07 0.09
0.06 0.02 0.04
0.0% 0.01 0.01

Israel United India United South South Sub- China MENA Turkey Brazil Japan Russia Poland Mexico
Kingdom States Africa Korea Saharan
Africa

EM PE Fundraising & Investment as a Percent of Global Total, 2004-2009 (%)

30%
26
25% Funds Raised, % Global
Capital Invested, % Global
% of Global Total, US$B

20% 19

15% 14
12
11
10
10% 9 9
8
7 7

5% 4

0%

2004 2005 2006 2007 2008 2009

EM PE 2009 Fundraising and Investment Review | 15

Emerging Markets Private Equity Funds with Closes in 2009
Fund Closes as
Geographic Target, of Dec 31,
Fund Manager Fund Name (vintage, status) Fund Type Focus US$m 2009, US$m
Sub-Saharan African Funds
African Capital Alliance Capital Alliance Private Equity (CAPE) Fund III (2009, Fundraising) Growth/Expansion West Africa, 350 200
Nigeria
Aureos Capital Aureos Africa Fund (2008, Closed) Growth/Expansion Sub-Sah. Africa 400 381
Aureos Capital Health in Africa Fund (2009, Fundraising) Growth/Expansion Sub-Sah. Africa 110 57
Development Partners International African Development Partners I (2008, Closed) Growth/Expansion Sub-Sah. Africa 600 416
Greylock Capital Mgmt. Greylock Africa Opportunity Fund (2009, Fundraising) Mezzanine Sub-Sah. Africa 200 78
GroFin Capital GroFin Africa Fund (2008, Closed) Multi-Stage Sub-Sah. Africa 160 170
Helios Investment Partners Helios Investors 2 (2009, Fundraising) Buyout Sub-Sah. Africa 650 400
InReturn Capital InReturn East Africa Fund I (2009, Fundraising) Growth/Expansion East Africa 23 6
Inspired Evolution Investment Mgmt. Evolution One Fund (2008, Closed) Growth/Expansion Sub-Sah. Africa 146 103

China-dedicated Funds
Baird Capital Partners Asia (BCPA) Baird Capital Partners Asia I (2008, Fundraising) Growth/Expansion China 100 65
Bengbu Zhongcheng Venture Investment Bengbu Zhongcheng VC Investment Company (2009, Closed) Growth/Expansion China N/A 18
(Government of Anhui Province-backed)
Capital Today Capital Today China Growth Fund II (2009, Fundraising) Growth/Expansion China 400 183
CCB International Ltd. (CCBI) CCBI Healthcare Fund (2009, Fundraising) Growth/Expansion China 356 234
CDH Investments CDH Fund IV (2009, Fundraising) Growth/Expansion China 1,400 1,030
Changzhou Pride Venture Investment LP Changzhou Pride Venture Investment LP (2009, Closed) Growth/Expansion China 25 25
China Everbright / Wuxi Guolian Everbright Guolian Capital Fund (2009, Closed) Venture Capital China 73 73
Investment Group Co.
China Science & Merchants Capital Beijing Zhongke Fangshan Venture Investment Fund (2009, Closed) Growth/Expansion China 73 73
Mgmt. (CSM / CSMVC) Group
China Science & Merchants Capital CSM Zhongke Baiyun Equity Investment Fund (2009, Fundraising) Growth/Expansion China 734 117
Mgmt. (CSM / CSMVC) Group
China Soft Investment Corporation Zhonghua Software Investment Fund (2009, Fundraising) Venture Capital China 29 15
CID Group CID Greater China Venture Capital Fund III (2009, Fundraising) Venture Capital China 200 34
CITIC Capital CITIC Capital China Partners II (CCCP II) (2009, Closed) Buyout China 500 925
CITIC Private Equity Funds Mgmt. Co. CITIC Mianyang Private Equity Fund (2009, Closed) Growth/Expansion China 1,321 1,318
(CITIC Securities)
CTC Capital CTC Li Yang (Yangzhou) VC Cooperation Fund (LYVCCF) (2009, Closed) Venture Capital China 44 44
DBS Private Equity DBS Private Equity China Fund (2009, Closed) Growth/Expansion China 100 100
Envision Capital Envision High Growth Fund (2009, Closed) Growth/Expansion China 73 73
Everbright Venture Investment Mgmt. Co. Ltd. China Everbright Venture Investment Jiangyin Co., Ltd. (2009, Closed) Growth/Expansion China 73 73
Foshan Venture Capital Foshan Venture Capital Fund (2009, Closed) Venture Capital China 7 7
Fujian Provincial Investment Develop- Fujian Province Venture Investment Fund (2009, Closed) Venture Capital China 88 88
ment Group (FPIDG)
Grand Asia Tonglu Value Investment Grand Asia Tonglu Value Investment (Xi'an) Company, LP Venture Capital China 23 22
(Xi'an) Company, LP (2009, Closed)
GSR Ventures GSR Ventures III (2009, Closed) Venture Capital China 383 383
Hubei Hi-tech Industrial Investment HHII / Daiwa SMBC Hubei Gaohe VC Investment Fund Venture Capital China 59 59
(HHII) / Daiwa SMBC Capital (2009, Closed)
Innovation Works Innovation Works Fund (2009, Closed) Venture Capital China N/A 115
Jiangsu Top-Bridge Capital Co., Ltd. Jiangsu Chenghui Capital Co. (Top-Bridge) Fund (2009, Closed) Growth/Expansion China 29 29
(Top-Bridge)
Keytone Ventures Keytone Ventures China Fund (2008, Closed) Venture Capital China 200 200
Nanjing Hi-Tech Venture Capital Co. Nanjing Hi-Tech Zhongcheng VC Investment Fund (2009, Closed) Growth/Expansion China 56 55
New Horizon Capital New Horizon Capital China Fund (2009, Closed) Growth/Expansion China 137 146
Peony Jiangnan Venture Investment Co., Ltd. Peony Jiangnan Venture Investment Co., Ltd. Fund (2009, Closed) Growth/Expansion China 44 44
Prax Capital Mgmt. Co. Prax Capital (Tianjin) Growth Capital Fund (2009, Closed) Growth/Expansion China 73 82
Shaanxi Tiandi Tourism Venture Shaanxi Tiandi Tourism Venture Investment Enterprise Fund Growth/Expansion China 220 15
Investment Enterprise (2009, Fundraising)
Shandong Technology Venture Capital Shandong Technology Venture Capital Co., Ltd. (2009, Closed) Venture Capital China 15 15
Co., Ltd.
Shanxi Jinfeng Huizhi Venture Investment Co. Shanxi Jinfeng Huizhi Venture Investment Company (2009, Closed) Venture Capital China 44 44
Shenzhen Capital Group Co., Ltd. (SCGC) Changzhou Hongtu VC Fund (2009, Closed) Venture Capital China 20 20

16 | EM PE 2009 Fundraising and Investment Review

Emerging Markets Private Equity Funds with Closes in 2009
Fund Closes as
Geographic Target, of Dec 31,
Fund Manager Fund Name (vintage, status) Fund Type Focus US$m 2009, US$m
Shenzhen CDF-Capital / Wuhu Construc- Shenzhen CDF-Capital Anhong Investment Fund (2009, Closed) Venture Capital China 7 7
tion Investment / Shanshan Enterprise
Shenzhen Cowin Venture Capital Co. Shenzhen Cowin Nanhai Growth Fund III (2009, Closed) Venture Capital China 73 73
Shenzhen GTJA Investment Group Co., Ltd. Shenzhen GTJA Huifu Investment Fund II (2009, Closed) Mezzanine China N/A 18
Shenzhen GTJA Investment Group Co., Ltd. Shenzhen GTJA Huifu Investment L.P. (2009, Closed) Mezzanine China 27 15
Silicon Paradise Venture Investment Co. Ltd. Shanghai Silicon Paradise Sunshine Venture Investment Co. Ltd. (2009, Closed) Growth/Expansion China 15 15
Silicon Paradise Venture Investment Co. Ltd. Shenzhen Silicon Paradise Sunshine Venture Investment Co. Ltd. (2009, Closed) Growth/Expansion China 15 15
Silicon Paradise Venture Investment Co. Ltd. Wuhan Silicon Paradise Sunshine Venture Investment Co. Ltd. (2009, Closed) Growth/Expansion China 15 15
Simon Murray & Co. / Wuxi Guolian Simon Murray & Co. Guolian Renminbi Fund (2009, Closed) Venture Capital China 15 15
Financial Investment Group Co. Ltd.
Softbank China Venture Capital (SB Softbank China Venture Capital III (2009, Closed) Venture Capital China 293 315
China Venture Capital / SBCVC)
Spring Capital Asia Spring Capital Asia Fund One (2009, Fundraising) Growth/Expansion China 200 151
State Development and Investment SDIC Innovation (Beijing) Investment Fund Co., Ltd. (2009, Closed) Growth/Expansion China 95 95
Corp. (SDIC)
Tembusu Partners Tembusu China Growth Fund (2009, Fundraising) Growth/Expansion China 80 20
Tembusu Partners / Nanjing Hi-Tech Nanjing Growth Fund (He Ding Investment) (2009, Closed) Growth/Expansion China 80 80
Venture Capital Co.
Tiantu Xingye Venture Capital Co., Ltd. Shenzhen Tiantu Xingrui Venture Capital Co., Ltd. (2009, Closed) Venture Capital China N/A 44
(Tiantu Capital)
Tsing Capital Yiyun Clean Technology Fund (2009, Fundraising) Growth/Expansion China 73 51
Yiyi International Film & TV Culture and Yiyi Film & TV Cultural Equity Investment Fund (2009, Fundraising) Growth/Expansion China 73 15
Media (Beijing) Co., Ltd.
Zhangiang Biomedical Industrial Fund Mgmt. Zhangjiang Biomedical Industrial Fund (2009, Closed) Growth/Expansion China 147 147
Zhejiang Haiyue Venture Capital Co., Ltd. Zhejiang Haiyue Venture Capital Fund (2009, Closed) Venture Capital China 15 15
Zhejiang Sinowisdom Investment Mgmt. Sinowisdom Haiyue Investment Co. Ltd. (2009, Closed) Growth/Expansion China 73 73
Co., Ltd. (Sinowisdom)
Zhejiang Tianyue Venture Capital Co., Ltd. Zhejiang Tianyue Venture Investment Fund (2009, Closed) Venture Capital China 15 15
Zhejiang Xinganxian Media Investment Dongfang Xingkong Cultural Fund (Oriental Star Sky Cultural Fund) Growth/Expansion China 37 37
Co., Ltd. (2009, Closed)
Zhengzhou Henghe Venture Investment Zhengzhou Henghe Venture Investment Co. Ltd. (2009, Closed) Growth/Expansion China N/A 16
Co. Ltd.

India-dedicated Funds
Ambit Pragma Ventures Ambit Pragma Ventures (2008, Closed) Growth/Expansion India 100 65
Avigo Capital Partners Ltd. Avigo SME Fund III (2009, Fundraising) Growth/Expansion India 250 150
Berkeley Energy Berkeley Renewable Energy Asia Fund (REAF) (2009, Fundraising) Growth/Expansion India N/A 75
Caspian Advisors India Financial Inclusion Fund (IFIF) (2008, Closed) Microfinance India 100 89
Catamaran Venture Fund Catamaran Venture Fund (2009, Closed) Venture Capital India N/A 128
CX Partners CX Partners Fund Alpha Ltd. (2009, Fundraising) Growth/Expansion India 500 220
Edelweiss Capital Ltd Edelweiss Special Opportunities Fund (ESOF) (2009, Fundraising) Distressed Debt/ India 200 105
Special Situations
Forum Synergies (India) PE Fund India Knowledge-Manufacturing Fund I (IKMF-I) (2009, Fundraising) Growth/Expansion India 250 135
Managers Ltd.
Hyderabad Information Technology HIVE Fund II (2009, Closed) Venture Capital India 25 25
Venture Enterprises Ltd
ICICI Venture Funds Mgmt. India Advantage Fund Series III (2009, Fundraising) Growth/Expansion India 500 350
ICICI Venture Funds Mgmt. India Advantage Fund VII (Mezzanine Fund I) (2007, Closed) Mezzanine India 113 95
IDFC Project Equity India Infrastructure Fund (IIF) (2008, Closed) Growth/Expansion India 1,000 927
India Value Fund Advisors Private Ltd. India Value Fund IV (2009, Closed) Growth/Expansion India 700 725
(formerly GW Capital)
Jacob Ballas Capital India New York Life Investment Mgmt. India Fund III (2008, Closed) Growth/Expansion India 500 440
Kotak Private Equity Group (KPEG) (PE Kotak India Private Equity Fund (2009, Fundraising) Growth/Expansion India 250 76
arm of Kotak Mahindra Bank)
Lighthouse Funds India 2020 Opportunity Fund (2008, Closed) Venture Capital India 125 104
Macquarie Group / State Bank of India (SBI) Macquarie-SBI Infrastructure Fund (MSIF) (2009, Fundraising) Growth/Expansion India 2,000 1,037
NASSCOM / ICICI Knowledge Park NASSCOM / ICICI Knowledge Park Innovation Fund (NIIF) (2009, Fundraising) Venture Capital India 42 9
Rajasthan Asset Mgmt. Company Pvt. Ltd. Rajasthan Venture Capital Fund II (RVCF II) (2009, Closed) Venture Capital India 100 20

EM PE 2009 Fundraising and Investment Review | 17

Emerging Markets Private Equity Funds with Closes in 2009
Fund Closes as
Geographic Target, of Dec 31,
Fund Manager Fund Name (vintage, status) Fund Type Focus US$m 2009, US$m
Sage Capital India Sage Capital Value Fund (2009, Closed) Distressed Debt/ India 200 90
Special Situations
Seed Advisors Pvt. Ltd. (Seedfund) Seedfund II (2009, Fundraising) Venture Capital India 50 35
Singularity Ventures Singularity Ventures (2009, Fundraising) Venture Capital India 10 3
Tata Capital Tata Capital Special Situations Fund (2009, Fundraising) Distressed Debt/ India N/A 151
Special Situations
TVS Capital TVS Shriram Growth Fund (2009, Closed) Growth/Expansion India 230 125
UTI Ventures Funds Mgmt. Co Ltd UTI Ventures Ascent India Fund III (2009, Closed) Growth/Expansion India 350 350
Zephyr Mgmt., L.P. Zephyr Peacock India Fund II (ZPII) (2009, Fundraising) Growth/Expansion India 75 24

Other Asian and Regional Funds

AMP Capital Investors Asian Giants Infrastructure Fund (2009, Fundraising) Growth/Expansion China, India 750 95
Challenger MBK Fund Mgmt. Challenger Mitsui Emerging Markets Infrastructure Fund (2009, Fundraising) Growth/Expansion Pan-Asia 650 238
Daiwa Quantum Capital Daiwa Quantum Capital Partners I L.P. (2009, Fundraising) Growth/Expansion Pan-Asia 300 80
Entropy Ventures LLC Amadeus Asian Clean Energy Fund (2008, Fundraising) Growth/Expansion Pan-Asia 100 35
Extream Ventures Extream Venture Fund I (2009, Closed) Venture Capital Singapore 21 15
H&Q Asia Pacific H&Q AP Greater China Growth Fund (2009, Closed) Growth/Expansion Pan-Asia 40 40
Henderson Equity Partners Henderson Asia Pacific Equity Partners II (2009, Closed) Growth/Expansion Pan-Asia 200 85
IL&FS Investment Managers Ltd. Standard Chartered IL&FS Asia Infrastructure Growth Fund (SCI Asia Growth/Expansion China, India 800 658
Fund) (2008, Fundraising)
Impax Asset Mgmt. Impax Asian Environmental Markets PLC (2009, Closed) Growth/Expansion Pan-Asia 174 174
Industrial Bank of Korea / SK Securities Software (SW) M&A Fund (2009, Closed) Buyout South Korea 33 36
Innosight Ventures Pte Ltd Incubator for Disruptive Enterprise and Start-ups (IDEAS) Fund (2009, Closed) Venture Capital Singapore 12 8
Korea Technology Investment Corpora- Green Growth Fund (2009, Closed) Growth/Expansion South Korea 80 130
tion / Benex Investment / SBI Holdings
Kuwait Finance House (Malaysia) Berhad Al Faiz Fund I (2009, Closed) Growth/Expansion Pan-Asia 150 98
Group / Al-Aman KSCC
MBK Partners MBK Partners II (2009, Closed) Buyout Pan-Asia 3,000 1,600
Olympus Capital Holdings Asia Asia Environmental Partners LP (2009, Closed) Growth/Expansion China, India 250 250
Questmark Asset Mgmt. QMA Capital Sdn. Bhd (2009, Closed) Growth/Expansion Pan-Asia 9 9
SkyLake Incuvest & Co. Ltd. SkyLake Global Incuvest 4 (2009, Fundraising) Growth/Expansion South Korea 80 86
South East Asia Venture Investment SEAVI Advent Equity Fund V (2009, Closed) Buyout China, 200 178
(SEAVI) Advent Singapore
Spice Finance / 3 Degrees Asset Mgmt. Spice 3 Degrees Special Opportunities Fund (2009, Fundraising) Distressed Debt/ South Asia 150 21
Pte Ltd Special Situations
STIC Investments Inc. ORYX-STIC Fund II (2009, Fundraising) Buyout China, South 500 300
Korea
The Carlyle Group Carlyle Asia Growth Partners IV (2008, Closed) Growth/Expansion Pan-Asia 1,000 1,040
The Carlyle Group Carlyle Asia Partners III (2008, Closed) Buyout Pan-Asia 4,000 N/A
Walden International Seed Ventures IV (2009, Closed) Venture Capital Singapore 13 13

Southeast Asian Funds

Astra Partners Sdn Bhd Astra Capital Sdn Bhd (2009, Closed) Growth/Expansion Southeast Asia 9 9
CIMB Standard Strategic Asset Advisors Islamic Infrastructure Fund (IIF) (2009, Fundraising) Growth/Expansion South and 500 262
Sdn Bhd Southeast Asia
Daiwa SMBC / SSI Asset Mgmt. DSCAP-SSIAM (Daiwa SMBC / SSI) Vietnam Growth Investment Fund Growth/Expansion Vietnam 55 9
(2009, Fundraising)
Emerging Markets Investments Pte. Ltd. Cambodia-Laos Development Fund (2009, Fundraising) Growth/Expansion Cambodia, Laos N/A 10
Leopard Capital Leopard Cambodia Fund (2008, Closed) Growth/Expansion Cambodia 100 34
Navis Capital Partners Navis Asia Fund VI (2009, Fundraising) Growth/Expansion South and South- 1,000 450
east Asia
Saratoga Capital Group Saratoga Asia Fund II (2007, Closed) Buyout Southeast Asia 330 152

Central & Eastern Europe Funds

ARX Equity Partners ARX CEE III (DBG Eastern Europe III) (2008, Fundraising) Buyout CEE 188 138
Baltcap Mgmt. BaltCap Private Equity Fund (2007, Closed) Growth/Expansion Baltics 132 92
Central-Fund Mgmt. Central Fund (2009, Fundraising) Growth/Expansion Hungary 61 26
CRG Capital, LLC CRG Central European Special Situations Fund I (2009, Fundraising) Distressed Debt/ CEE 300 54
Special Situations

18 | EM PE 2009 Fundraising and Investment Review

Emerging Markets Private Equity Funds with Closes in 2009
Fund Closes as
Geographic Target, of Dec 31,
Fund Manager Fund Name (vintage, status) Fund Type Focus US$m 2009, US$m
East Capital East Capital Special Opportunities Fund (2009, Fundraising) Distressed Debt/ CEE 140 84
Special Situations
Genesis Capital Limited Genesis Private Equity Fund II (2009, Fundraising) Growth/Expansion CEE 85 56
Innova Capital Innova V L.P. (2008, Closed) Buyout CEE 525 392
Resource Partners Sp. z.o.o. Resource Eastern European Equity Partners LP I (2009, Fundraising) Buyout CEE 280 74
Small Enterprise Assistance Funds (SEAF) SEAF South Balkan Fund (2006, Closed) Growth/Expansion Balkans 13 21
Syntaxis Capital Syntaxis Mezzanine Fund II (2009, Fundraising) Mezzanine CEE 375 205

Russia & CIS Funds

Macquarie Bank / Renaissance Capital Macquarie Renaissance Infrastructure Fund (2009, Fundraising) Growth/Expansion CIS countries 1,000 530
Marshall Capital Partners Marshall Capital I (MarCap I) (2008, Closed) Growth/Expansion Russia 500 300
Quadro Capital Partners Quadro TBD Fund I (2009, Fundraising) Distressed Debt/ Russia 350 200
Special Situations
Siguler Guff & Company, LLC Russia Partners III (2007, Closed) Growth/Expansion Russia N/A 627
UFG Private Equity UFG Private Equity Fund II (2009, Fundraising) Growth/Expansion CIS countries 200 150

Latin American & Caribbean Funds

ACON Investments, LLC ACON Latin America Opportunities Fund (2009, Fundraising) Buyout LatAm & Carib. 400 100
Alothon Group Alothon Fund II (2008, Closed) Buyout LatAm & Carib. 300 80
Alta Growth Capital Alta Growth Capital Mexico Fund (2007, Closed) Growth/Expansion Mexico 150 75
Altra Investments Altra FCP I (APEF I) (2008, Closed) Buyout Colombia, Peru 110 105
Aureos Capital Aureos Latin America Fund (ALAF) (2008, Closed) Growth/Expansion LatAm & Carib- 300 182
bean (ex-Brazil)
Brookfield Asset Mgmt. Brookfield Colombia Infrastructure Fund (2009, Fundraising) Growth/Expansion Colombia 400 320
Clifftop Capital Clifftop Capital I (2009, Closed) Distressed Debt/ Mexico, Colom- 200 200
Special Situations bia, Peru
Companhia de Participacoes (CRP) Brazilian Middle Market Growth Fund (CRP VII) (2009, Fundraising) Growth/Expansion Brazil 150 118
Diligo / Nexus Capital Partners ND Latin America Infrastructure Fund I (2009, Fundraising) Growth/Expansion Colombia 150 54
EMP Global EMP Central America Mezzanine Infrastructure Fund (2009, Closed) Mezzanine Central America 155 150
IGNIA Partners, LLC IGNIA Social Venture Fund I (2008, Fundraising) Venture Capital LatAm & Carib. 75 47
Performa Investimentos Performa Investimentos SC-1 (2009, Closed) Venture Capital Brazil 8 8
TMG Capital Partners TMG Private Equity Fund II (2009, Closed) Venture Capital Brazil 400 275
TribeCapital Partners Tribeca Fund I (2007, Closed) Buyout Colombia 150 132
WAMEX Private Equity Mgmt. Multinational Industrial Fund II (2009, Fundraising) Growth/Expansion Mexico 150 55

MENA Funds
Beltone Private Equity Beltone Midcap Fund (2009, Fundraising) Growth/Expansion MENA 200 30
Byblos Ventures Byblos Private Equity Fund (2009, Fundraising) Growth/Expansion Lebanon 40 20
Capital Trust SA EuroMena II (2009, Closed) Growth/Expansion MENA 150 150
Gulf Capital Gulf Capital Equity Partners II (2008, Fundraising) Buyout Middle East 500 475
NBK Capital NBK Mezzanine Fund I (2009, Closed) Mezzanine MENA 200 156
Saffar Capital Saffar Financial Infrastructure Fund (2009, Fundraising) Growth/Expansion MENA 150 20
Sphinx Capital / Citadel Capital Sphinx Distressed Turnaround Fund (2009, Fundraising) Distressed Debt/ Egypt 100 52
Special Situations
The Carlyle Group Carlyle MENA Partners (2007, Closed) Buyout MENA 500 500
UBS Asset Mgmt. / Invest AD Invest AD-UBS Infrastructure Fund I (2009, Fundraising) Growth/Expansion MENA, Turkey 600 250
Multi-Region Funds
Actis Actis Infrastructure 2 (2008, Closed) Buyout South and 1,000 751
Southeast Asia,
Sub-Sah. Africa
Cartica Capital Emerging Markets Corporate Governance Fund (2009, Fundraising) Growth/Expansion Pan-EM N/A 200
Developing World Markets DWM Microfinance Equity Fund I (2009, Fundraising) Microfinance Pan-EM N/A 82
Leapfrog Investments Leapfrog Microfinance Fund (2009, Fundraising) Microfinance India, Indonesia, 100 50
Philippines,
Pakistan, Uganda,
South Africa
MicroVest Microvest II (2009, Closed) Microfinance Pan-EM 70 60
Wolfensohn Capital Partners Wolfensohn Capital Partners Private Equity Fund (2007, Closed) Growth/Expansion Pan-EM 500 250

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