In 2011, 15 private debt funds targeting emerging markets raised $3.31 billion making the year the most successful for such fundraising in the post-crisis years. Since 2011, there has been a steady decline in fundraising for these markets but capital raising is gathering pace in 2015. $1.47 billion has so far been collected from investors for eight funds targeting emerging markets. 2015’s total is already 84% of the total raised in 2014.
Shoreline Capital closed its $500 million China-focused distressed debt vehicle, Shoreline China Value III, in June 2015. The corporate debt fund is the largest emerging markets-focused private debt vehicle to hold a final close this year. Jive Investments raised the second largest fund of 2015 with the final close this month for its $228.43 million debut vehicle which invests into distressed corporate and real estate debt in Brazil.
There are currently 59 private debt vehicles on the road or coming to market targeting $23.86 billion for investments into emerging markets. IL&FS Investment Managers Ltd is responsible for the two largest of these, both of which will invest into India. Its senior infrastructure debt fund, IL&FS Infrastructure Debt Fund, has a target size of $5 billion while its subordinated infrastructure debt vehicle, India Infrastructure Debt Fund, is targeting $2 billion.