LP Scorecard: Chinese Tech Tops the Emerging Markets

That fund was followed by the 2007 vintage South American-focused DLJ South American Partners with a 40.6 percent IRR and 2.5x multiple and the 2001 Carlyle Japan Partners I LP which takes third place with a 34 percent IRR and 2.2x multiple.

The analysis includes some 112 emerging markets funds ranging from the most mature 1995 vintage vehicle Lombard/Pacific Partners LP which posted an IRR of 5.9 per cent and multiple of 1.3x to funds as young as 2012.

Top quartile performance for the selection posted a 12.4 percent IRR and 1.3x multiple, bottom quartile was -3.2 per cent and 0.9x and median IRR was 5.99 percent and 1.1x multiple.

Altogether, the Buyouts return database includes over 1,500 private equity related vehicles from US public pension fund data, including over 500 domestic buyout funds and over 400 domestic venture capital funds. Most of the data is current as of year-end 2011.

The top ten vintages in this selection range from as young as the 2010 Southern Cross Latin America Private Equity Fund IV LP and Advent Latin American Private Equity Fund V LP ranked in fifth and seventh places respectively to the most mature 1998 vintage Carlyle Asia I in tenth place. The analysis ranks only direct private equity funds and does not rank the fund-of-fund vehicles focused on the emerging markets region. Included in the ranking, HarbourVest vehicles HIPEP VI Emerging Markets Fund LP and HIPEP VI Asia Pacific Fund LP would have featured in third and ninth place respectively, the 1999 vintage Goldman Sachs Asia dedicated fund-of-funds vehicle Goldman Sachs Special Opportunities Asia Fund would have come in seventh place and Asia Alternatives Capital Partners II, LP would have come in tenth place.

Emerging markets private equity fundraising continues to take a greater share of global private equity commitments, accounting for 20 percent of all capital raised in 2012, up from 12 percent in 2007 and 5 percent in 2003, according to recent figures from the Emerging Markets Private Equity Association (EMPEA). According to EMPEA’s proprietary database of private equity activity, 161 emerging market funds raised $40.3 billion in 2012, up slightly from the 148 funds that raised $38.5 billion in 2011. An increase in capital commitments flowing to pan-emerging markets and Asia-focused regional funds helped to offset reduced interest in China- and India-dedicated vehicles, which saw capital raised drop by 35 percent and 24 percent, respectively. 

On the investment side, private equity firms committed $23.7 billion in disclosed value to emerging market companies through 819 deals, compared with $26.9 billion through 876 deals the previous year, according to EMPEA. Capital invested in China fell 33 percent to $7.1 billion, a five-year low, and capital invested in India fell 57 percent to $2.7 billion, a seven-year low. However investment in Brazil increased 78 percent to $4.4 billion and investment in non-BRIC countries increased 35 percent to $8.3 billion.

Angela Sormani is a special correspondent for Buyouts in London.

10. Carlyle Asia I

Vintage Year: 1998

Fund Focus: Asia

Multiple: 2.6x

IRR: 17.8 percent


9. Carlyle Asia Partners (PV II) LP

Vintage Year: 2000

Fund Focus: Asia

Multiple: 2.7x

IRR: 18.4 percent


8. Lombard Asia III

Vintage Year: 2007

Fund Focus: South East Asia and Greater China

Multiple: 1.8x

IRR: 20.4 percent


7. Advent Latin American Private Equity Fund V LP

Vintage Year: 2010

Fund Focus: Latin America

Multiple: 0.9x

IRR: 20.77 percent


6. Actera Partners LP

Vintage Year: 2007

Fund Focus: Turkey

Multiple: 1.8x

IRR: 22.8 percent


5. Southern Cross Latin America Private Equity Fund IV LP

Vintage Year: 2010

Fund Focus: Latin America

Multiple: 0.8x

IRR: 26.72 percent


4. ZN Mexico II LP

Vintage Year: 2003

Fund Focus: Mexico

Multiple: 3.03x

IRR: 26.9 percent


3. Carlyle Japan Partners I LP

Vintage Year: 2001

Fund Focus: Japan buyouts and growth

Multiple: 2.2x

IRR: 34 percent


2. DLJ South American Partners

Vintage Year: 2007

Fund Focus: South America Growth

Multiple: 2.5x

IRR: 40.6 percent


1. GSR Ventures III

Vintage Year: 2008

Fund Focus: Chinese Tech

Multiple: 1.9x

IRR: 55.1 percent