Actis raises $2.9 bn fund for emerging markets

Actis, a global private equity investor, today announced that it has closed its $2.9 billion private equity fund, Actis Emerging Markets 3 (AEM3), exceeding its target of $2.5 billion. This is one of the largest dedicated emerging markets private equity funds closed this year and doubles the amount raised by Actis in 2004.

This new fund will be used to build a diversified portfolio of between 30 and 40 investments across Africa, China, India, Latin America and South East Asia, typically investing a minimum of $50 million of equity capital in buyout and growth transactions.

The new fund gives Actis the flexibility to allocate capital to the most compelling investment opportunities across the emerging markets.

AEM3 includes commitments from a well-diversified group of 100 investors from across the globe, including a number of first time investors in emerging markets, and represents a significant endorsement of Actis’s track record of investing in emerging markets, a statement from Actis noted.

Paul Fletcher, Senior Partner at Actis said: “We are delighted to have assembled such an outstanding group of investors who continue to recognise the opportunities for private equity investment across the emerging markets, despite the current economic climate."

“We believe that underlying economic growth remains resilient in many of the emerging markets. 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. We remain very confident about the long term prospects of the emerging markets and that exceptional opportunities will present themselves during the life of this fund,” he added.