Emerging markets across the globe received private equity investments of $22.1 billion in 2009, with India accounting for more than one-fifth of the kitty, according to a report by Emerging Markets Private Equity Association (EMPEA).
Emerging markets accounted for as much as 26 per cent of global private equity investment last year, even as total investments in the region more than halved compared to 2008.
According to the report, global PE investment in emerging markets totalled $22.1 billion across 674 deals in 2009, a 54 per cent fall in value as compared to the previous year.
"Dedicated pools of capital for emerging markets may be down, but level of investment activity in 2009 demonstrates that managers of more flexible capital in global funds see greater opportunities in the emerging markets than elsewhere," EMPEA's Director of Research Jennifer Choi said.
Robust activity in emerging Asia offset declines in other markets. Asia captured 63 per cent of total emerging market PE investments by value, "with China accounting for $6.3 billion and India capturing $4 billion in 2009," it said.
"Asia will continue to dominate emerging markets private equity landscape, but many investors are looking to diversify beyond Asia, particularly as growing competition makes markets such as China and India somewhat less attractive," Choi said.
The 54 per cent drop in overall PE investment value to the region was primarily due to falling transaction sizes.
