Market Research
Private Capital Investment Rises In Emerging Markets
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New research by the Global Private Capital Association was released this month on private capital activity and trends in global markets.
Research by non-profit group GPCA shows that private capital
deals for the first half of 2022 rose year-on-year in India,
South East Asia, Latin America, Africa and the Middle East,
compared with the previous year. It found that investors had
been deploying capital in resilient sectors such as energy,
digital infrastructure, IT, food and agribusinesses.
Nevertheless, private capital activity in China fell by 37 per
cent, year-on-year, driven by the prolonged lockdowns that have
affected the economic outlook, the firm added. Policy changes
dating back to 2021 have also curbed VC and tech investing in
particular. Tech deals in 1H 2022 were concentrated in sectors
aligned with Beijing’s five-year plan, including semiconductors
and hardware, electric vehicles and healthcare, the firm
said.
Africa, the Middle East, India, Southeast Asia, Central and
Eastern Europe were bright spots for VC activity, in particular,
GPCA said, with VC investment up 80 per
cent, compared with the first half of 2021.
In Central and Eastern Europe, VC investment hit a record high,
but Q2 activity in the second quarter slowed as the war in
Ukraine escalated. In Southeast Asia, venture
capital investment climbed by as much as 92 per cent,
year-on-year, the firm said.
Investment activity in green industries such as
electric vehicles also continued to grow, no longer confined
to first-mover countries like China, with notable big ticket
deals in Croatia and India, GPCA stressed.
Private capital investments in food and
agriculture have also increased since the start of
the pandemic, the research shows.
Continued supply disruptions due to COVID-19 and the war in
Ukraine are driving investment in local food producers and
tech-enabled platforms in Asia and the Middle East, the firm
added.
GPCA is a non-profit membership organisation, representing
private capital investors including private equity and venture
capital, who manage over $2 trillion in assets across India,
Southeast Asia, Latin America, Africa, the Middle East, Central
and Eastern Europe.