Chart of the week: Emerging market private debt fundraising gains traction

Closed-ended fundraising focused on emerging markets has grown fivefold since 2008.


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With China making slow progress to deleveraging, as reported by Private Debt Investor this week, PDI Research & Analytics took a look at what is happening in the rest of the emerging markets.

Private debt markets in emerging economies were particularly strong in 2015, with 10 closed-ended private debt funds raising $4.49 billion between them. This figure was dominated by China Communication Construction Company’s infrastructure-focused mega fund, which held a $2.38 billion final close.

While the market has seen a fivefold increase since 2008, it has been a bumpy ride along the way. In the wake of the global financial crisis, private debt fundraising for emerging economies fell to just $450 million before recovering. Another dip, this time in 2014, coincided with worries about the state of the Chinese economy.

Asia-Pacific focused funds have been largely responsible for the growth, representing an average of 62 percent of each year’s total capital raised.

Meanwhile, Latin America is emerging as an area of increasing interest for private debt funds, with 56 percent of the $720 million raised by emerging market-focused vehicles closed this year targeting the region.

Three funds have held a final close so far in 2016, the largest being Ashmore Investment Management’s Columbia Infrastructure Senior Debt Fund, which closed on $405 million in February.