Actis, a leading private equity investor in emerging markets, has successfully raised $2.9 billion for investment in Africa, Asia and Latin America. This is one of the largest dedicated EM private equity funds closed in 2008.
The new fund, Actis Emerging Markets 3, will invest $1 billion in India over a period of three to four years. Actis has had several good exits in India, including Punjab Tractors, which was acquired by Mahindra & Mahindra, India’s leading tractor maker.
The fund includes commitments from a group of 100 investors from around the world, including some first-time investors in emerging markets.
“We believe that underlying economic growth remains resilient in many of the emerging markets,” says Paul Fletcher, senior partner at Actis. “Much of this growth can be linked to businesses benefiting from consumer demand and increased investment in domestic infrastructure, and Actis’s investment strategy is tailored accordingly,” he says.
The new fund gives Actis the flexibility to allocate capital across emerging markets, typically investing $50 million of equity capital in buyout and growth transactions. Fletcher says he is happy that investors continue to recognize the opportunities for private equity investment in emerging markets, despite the current economic climate.