Actis announced that it had raised $2.9bn for its new private equity fund to invest in companies across Africa, China, India, Latin America and south-east Asia.The move underlines how emerging market private equity groups are still able to raise cash from investors, while rivals focused on the more financially stricken markets of the US and Europe are finding fund-raising much tougher.
The new fund cements Actisâ??s place as one of the worldâ??s biggest private equity groups focused exclusively on emerging markets. It spun out four years ago from the UKâ??s state-owned CDC group, its biggest investor, which put $650m in the new fund.
The attraction of places such as China, Africa, Brazil and India has grown for private equity since their strong economic growth proved more immune to the credit crunch than the US and Europe. Buy-outs also typically use less debt in emerging markets.
Paul Fletcher, senior managing partner at Actis, said that the bigger fund â?? almost double its previous $1.5bn fund and well ahead of its $2.5bn target â?? meant its average equity investment would increase from $30m-$40m to more than $50m.
Actisâ??s new fund has already committed money to eight deals, including a $50m minority investment in Xiabu Xiabu, a Chinese hot-pot chain; a $48.5m stake in Moâ??Men, an Egyptian fast food chain, and the $700m buy-out of Alstomâ??s South African electrical engineering business.
