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News From EMPEA Emerging Markets Private Equity Funds Raise over US$20 Billion in the First Six Months of 2007 Outlook for 2007: Record-Breaking Totals for EM Fundraising Industry News "CVC Set to Raise US$6 Billion for Asia Fund" (Asia) "Latin America Is the New Hot Spot" (Latin America and the Caribbean) "Taiwan Sees Fresh Burst of Buy-Out Activity" "UK Firm Keen to Buy Out Oriental Bank" (Asia) "Blackstone to Purchase 51 Percent of Lattelecom" (Central and Eastern Europe and Russia) "Delta's Dmitriev Sets Up Icon Private Equity Fund" (Central and Eastern Europe and Russia) "Citadel Buys Into Misr Glass" (Middle East) "StanChart Fund Buys 86 Million Shangri-La Shares" (Asia) "Circle to Buy Equity Stake in Sasfin" (Africa) "Playa Hotels & Resorts, S.L. Acquires the Ocean Bavaro Spa and Beach Resort in Punta Cana, Dominican Republic" (Latin America and the Caribbean) "China's Citic Securities, CICC Planning Private Equity Units" (Asia)
News From EMPEA
Emerging Markets Private Equity Funds Raise over US$20 Billion in the First Six Months of 2007 Outlook for 2007: Record-Breaking Totals for EM Fundraising
Washington, D.C., September 19, 2007- 107 private equity funds focused
Industry News "CVC Set to Raise US$6 Billion for Asia Fund" (Asia) Financial Times (09/13/07) Tuckerin, Sundeep CVC Capital Partners' latest pan-Asian fund could raise up to US$6 billion, which would eclipse the record US$4.2 billion recently raised by TPG. CVC was spun out of a Citigroup private equity division in 1993. Its two previous Asia-dedicated funds, one for US$750 million in 2000 and the other US$2 billion in 2005, were jointly raised and managed with Citigroup. But CVC has decided to handle the latest fund on its own to avoid conflicts about how best to share profits generated by the fund. Its success in the previous ventures gave it the confidence to make that decision, say analysts. CVC closed 28 deals worth a total of US$14.8 billion in the Asian region between 2000 and September 2006. Its latest fund will add to the existing pool of US$35 billion still waiting to be invested in the region. Return to Headlines "Latin America Is the New Hot Spot" (Latin America and the Caribbean) Financial News (09/13/07) Basar, Shanny July saw Latin American private equity funds raise US$2 billion, which with the US$1.5 billion raised during the first six months of the year puts the region on track to break the record US$3.6 billion raised in 1998. Buyout group Advent International closed the region's largest fund, worth US$1.3 billion. The fund has made its first investment with the purchase of the housing business subsidiaries of Corporativo Javer of Mexico. The company says that the transaction was its largest regional acquisition to date. Also closing a Latin American fund, worth US$1.03 billion, was GP Investimentos of Brazil, which in August acquired Brazilian maker of refractory material for the steelmaking, cement, and glass industries Magnesita for 1.2 billion Brazilian realais (US$627 million). At around the same time, GP agreed to purchase the Latin American oil services and exploration operations of Texas-based drilling contractor Pride International for US$1 billion. Yet another regional private equity player is Fir Capital, an early-stage Brazilian venture capital firm, which has closed a US$40 million Brazil fund and is set to begin fundraising for a new US$125 million fund. While more than 80 percent of the private equity funds raised in the first six months of 2007 were dedicated to Brazil, there is growing interest in other markets like Peru, Chile, and Colombia. Return to Headlines "Taiwan Sees Fresh Burst of Buy-Out Activity" Financial Times (09/17/07) Hille, Kathrin Taiwan's technology sector is once again catching the eye of buyout funds. Warburg Pincus has agreed to acquire a 10 percent stake in Chunghwa Picture Tubes, a maker of TFT LCD panels, for US$250 million; the deal, if approved, would be the first investment by a leading private equity firm in the sector. In a separate deal, a private equity consortium consisting of Taiwanese-backed FAT Capital, Merrill Lynch, and H&Q Asia has completed a tender offer for computer components manufacturer Primax Electronics for US$265 million. Private equity investment in Taiwan's technology sector had cooled after U.S. buyout group Carlyle dropped its plans to acquire leading chip-testing and packaging firm ASE due to strong hints from the government that it would not approve the deal. Of late, private equity has targeted small banks and traditional industry companies; Taiwanese regulators have signaled their willingness to approve smaller deals that do not involve a delisting of the acquired firm. Return to Headlines "UK Firm Keen to Buy Out Oriental Bank" (Asia) Daily Star (Bangladesh) (09/14/07) U.K. private equity firm East Investment is seeking approval from the government of Bangladesh to acquire a 100 percent stake in Oriental Bank. This would be the company's first investment in South Asia and if successful could herald future investments in Bangladesh. East Investment officials says that if the buyout of the bank goes through, US$1 billion could be invested in Bangladesh over the next three years, at least some of it in the power, transportation, and IT sectors. Return to Headlines "Blackstone to Purchase 51 Percent of Lattelecom" (Central and Eastern Europe and Russia) TeleGeography (09/13/07) Private equity group Blackstone will invest US$178 million to acquire a 51 percent stake in Latvian telecoms group Lattelecom along with a group of four banks. Lattelecom officials said they received offers to finance the transaction from over 10 private equity funds, but that fixing terms was made difficult in part by the global market turbulence. The buyout is expected to be completed in November. Return to Headlines "Delta's Dmitriev Sets Up Icon Private Equity Fund" (Central and Eastern Europe and Russia) Russia & CIS General Newswire (09/13/07) The managing partner of Delta Private Equity Partners has established the Icon Private Equity Fund. The Fund will invest in leading companies with high growth potential in the financial services, media, technology, and retail sectors of Russia, Ukraine, and Belarus. Though Kirill Dmitriev declined to comment on the size of the fund, he said investments would range from US$50 million to US$200 million, with no limits on stake size. Icon plans to conclude its first deal, within Ukraine's financial sector, in October. Dmitriev will remain a partner at Delta and says that the two funds might be involved in joint investment projects. Return to Headlines "Citadel Buys Into Misr Glass" (Middle East) ArabianBusiness.com (09/12/07) Egyptian private equity firm Citadel Capital has agreed to acquire a 35 percent stake of Egyptian glass products manufacturer Misr Glass Manufacturing for US$63 million. Citadel, which has more than US$8 billion under management, earlier in September led a consortium that purchased Egypt's Dina for Agricultural Investments [DinaFarms] for US$84.81 million. Citadel was among the sellers of Egyptian Fertilizers Co. to an Abraaj Capital-led consortium for $1.4 billion, the second largest buyout to date in the MENA region. Return to Headlines "StanChart Fund Buys 86 Million Shangri-La Shares" (Asia) Edge (Malaysia) (09/12/07) Tang, Lee Yu Hong Kong-based Standard Chartered Private Equity has acquired a 19.55 percent stake in Shangri-La Hotels of Malaysia for an undisclosed sum. Malaysia's hospitality sector is experiencing an upturn, and Standard will benefit from increasing tourism in the nation. The fund invests in mid- to late-stage companies with positive cash flow that need expansion capital, in addition to management buyouts. Return to Headlines "Circle to Buy Equity Stake in Sasfin" (Africa) Business Day (South Africa) (09/12/07) Nyamakanga, Regis Black-owned Circle Capital Ventures has announced plans to acquire a 26 percent stake in South African banking and financial services firm Sasfin for nearly R500 million (US$69.3 million). The deal will put Sasfin well within the bounds of national empowerment requirements. Officials at Sasfin say the deal will allow the company to grow its private equity business, launched about two years ago with a focus on small and midsize businesses. Sasfin says that in addition to its local focus, it is looking abroad for opportunities, including other African nations. Return to Headlines "Playa Hotels & Resorts, S.L. Acquires the Ocean Bavaro Spa and Beach Resort in Punta Cana, Dominican Republic" (Latin America and the Caribbean) PRNewswire (09/11/07) The private equity arm of Grupo Barcelo of Spain, Playa Hotels & Resorts, has acquired its third resort in the Dominican Republic, the 738-guestroom Ocean Bavaro Spa and Beach Resort in Punta Cana. The firm now has nine hotels in Mexico and the Caribbean, including the Breezes Punta Cana Resort, Spa and Casino acquired last year and the recent addition of the Sunscape Casa del Mar Resort adjacent to Casa de Campo in the Dominican Republic. Playa Hotels & Resorts is the private equity arm of Grupo Barcelo of Spain, formed last year to focus on the acquisition and development of all-inclusive beachfront resorts in Latin America and the Caribbean. Playa Hotels is currently in negotiations to acquire additional properties in Mexico, the Dominican Republic, Costa Rica, and Panama and expects further deals to close by year's end. Playa Hotels has US$1 billion in available capital and has raised upwards of US$580 million from a small group of international institutional investors. Return to Headlines "China's Citic Securities, CICC Planning Private Equity Units" (Asia) International Herald Tribune (09/11/07) Citic Securities and China International Capital Corp. (CICC) have become the first brokerages in China to get government approval to launch private equity arms. Though CICC had earlier operated a private equity fund (now called CDH Investments), it was forced to spin it off after regulators banned local securities firms from operating such funds. Citic plans to establish a private equity unit with startup funds of US$110 million. The funds operated by both brokerages will dwarf other domestic funds, which typically manage about US$13 million worth of assets. Analysts expect other local securities houses to join the private equity market. Return to Headlines
Abstract News © Copyright 2007 INFORMATION, INC. |
19 September 2007
Emerging Markets Private Equity NewsWatch provides a selection of noteworthy articles pertaining to private equity investing in emerging markets and is distributed weekly to a wide audience. The Emerging Markets Private Equity NewsWatch is a publication of the Emerging Markets Private Equity Association. For more information on EMPEA, please contact: To advertise, contact: Emerging Markets Private Equity Association  |