When ranked by the number of data room requests over the past three months from 2,749 accredited investors looking for investments in Palico’s online private equity fund marketplace, what stands out among popular emerging market vehicles is their diversity, notably by geography and strategy.
|Funds from All Over the World|
Asia is the most represented region among Palico’s investable emerging market fundraisings, accounting for a significant share of strategic focus at six of the 10 most popular vehicles. The Middle East & Africa account for investment focus at four of the top 10, with two funds following a Latin America strategy.
|Specialization is King|
The days when generalist growth funds dominated emerging market private equity are over. While there are two emerging market fundraisings following a broad growth strategy, one in Africa and one in China, eight of Palico’s 10 most popular emerging market fundraisings are specialized. They range from the very nichey and relatively small, a $70 million fundraising backing Israeli-developed food technology, to bigger funds targeting global expansion; for example, Cathay Capital’s North America-Sino Fund, a vehicle whose speciality is helping U.S. companies expand into China and vice versa.
|First-Time Managers are Hot, as is Yield|
Four out of 10 of Palico’s most popular emerging market fundraisings are from first-time managers who’ve built up very specific expertise in less crowded areas of investment. For example, Ictineo Infrastructure is a first-time fund specializing in sustainable water treatment, waste management and clean energy projects in Mexico, run by a team that has decades of experience in project finance. Half of Palico’s top ten emerging market private equity fundraisings also offer the promise of regular yield in addition to long-term capital gains. These funds specialize in infrastructure, real-estate and credit.
|Top 10 Listings Offer a Wealth of Detail for Accredited Investors|
One common characteristic among the most popular emerging market fundraisings on Palico is the wealth of detail they offer potential investors through the platform’s public profiles and data rooms. The availability of extensive detail on the platform is a key driver of strong investor demand for fundraisings.
|Navigating Private Equity’s Growing Diversity|
As investors allocate rising amounts to private equity, choice in fundraisings and secondaries is expanding into less crowded, frequently less well-known strategies. In an intensely competitive and complex private equity universe, Palico’s online marketplace helps investors find the best funds and helps managers connect with the right investors. Ultimately, Palico makes transacting easier for both limited partners and general partners.