Institutional Investor appetite for private equity in emerging markets: What will make them commit t

1
Institutional Investor appetite for private
equity in emerging marketsWhat will make them
commit to Africa?

• Richard Sachar, Almeida Capital
• 7th November 2005
• 5TH AFRICAN VENTURE CAPITAL CONFERENCE

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LPs have been feasting in 2005
Total funds raised, bn
236
203
155
128
89
61
- 42
- 31
109
- 34
60
Change
Source Almeida Capital research
3
What is on an LPs plate now?
Other
Other
Asia
Secondaries
Global
Mezzanine
Generalist
US
Buyouts
Europe
Venture
Source Almeida Capital research survey of 100
active LPs
4
Whats on the menu tomorrow?

Starters FUNDS OF FUNDS Main courses BUYOUTS Ve
getarian options VENTURE US entrées US FUNDS IN
EUROPE New tastes EMERGING MARKETS Desserts SECO
NDARIES
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Emerging markets allocation
100 50 respondents
Source Almeida Capital research survey of 50
LPs interested in emerging markets
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Emerging markets interest
Level of interest
Most interest
Source Almeida Capital research survey of 50
LPs interested in emerging markets
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Emerging markets investment approach
100 50 respondents
Top down
Top down and bottom up
Bottom up
Source Almeida Capital research survey of 50
LPs interested in emerging markets
8
Reasons NOT to invest
100 50 respondents
Source Almeida Capital research survey of 50
LPs interested in emerging markets
9
Reasons to invest
100 50 respondents
Source Almeida Capital research survey of 50
LPs interested in emerging markets
10
Emerging market factors
100 maximum importance
Source Almeida Capital research survey of 50
LPs interested in emerging markets
11
Fund characteristics
100 maximum importance
Source Almeida Capital research survey of 50
LPs interested in emerging markets
12
Investment time frame
5 or more years
2-5 years
1-2 years
0-1 years
Source Almeida Capital research