Where The Money Is Flowing In Emerging Markets

(By Ariel Schwartz)

 For the first time, institutional investors can search through a database for funds currently raising capital,” he explains. “Say I want to invest in a growth capital fund in sub-saharan Africa. I’ll pull up a list of funds seeking capital, see how much capital was raised, and I can download data to a CSV file and run an analysis on it.

Even if you’re not in the financial industry, you can probably sense it: there is a lot of money flowing into certain developing countries–China and India are the most obvious examples. But finding specifics can be difficult; private investments don’t leave a data trail.

SAP and the Emerging Markets Private Equity Association (EMPEA) have teamed up to create an online dashboard that lays it all out: where private equity activity is happening, what the regional trends are, and the fund size distribution. All of the data is available to the public except for country-level data, information on the largest funds raised, and a searchable fund manager database–all of which is reserved for EMPEA members.

“We’ve taken all the data we collected and geospatially tagged it at the regional and country level,” says Mike Casey, a Director in EMPEA’s Consulting Services unit.

There are some surprises to be found in the tool. As Casey points out, there’s growth in some seemingly unlikely frontier markets, like Mali, Sierra Leone, and the Democratic Republic of the Congo. It’s all part of a larger growth trend in sub-Saharan Africa.

Casey believes that the fund manager database is one of the most exciting features of the dashboard. “For the first time, institutional investors can search through a database for funds currently raising capital,” he explains. “Say I want to invest in a growth capital fund in sub-saharan Africa. I’ll pull up a list of funds seeking capital, see how much capital was raised, and I can download data to a CSV file and run an analysis on it.”

While some of the most detailed data isn’t available for public consumption, there’s still an opportunity for casual users to learn a lot about the money entering developing countries. Ultimately, says Casey, “We believe private equity can play a vital role in private sector development in emerging markets,”

Check out the dashboard here.

(Source: Fastcoexist)

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