EMPEA Research Methodology
EMPEA’s research methodology has been updated as of 2 November 2016. Afghanistan and Pakistan are now included in Emerging Asia, rather than MENA, regional totals. In addition, unless otherwise specified, EMPEA's data and statistics now include expanded coverage of private infrastructure and real assets and private credit funds, in addition to previously reported private equity activity.
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EMPEA’s industry data and statistics provide an overview of fundraising, investment and exit activity among private alternative asset managers active in the emerging markets of Africa, Asia, Europe, Latin America and the Middle East. Unless stated otherwise, the information presented in EMPEA reports and data products is drawn from EMPEA’s proprietary research database, FundLink, and is based on data obtained from surveys of industry participants, direct communications with fund managers, press releases, trade publications and exchanges with regional and local venture capital associations. Fundraising, investment and exit amounts in EMPEA reports have been confirmed wherever possible directly by fund managers. EMPEA updates historical data on a quarterly basis as new data from fund managers and other sources is compiled in FundLink. Any discrepancies between the aggregate statistics published by EMPEA and the constituent data on individual funds and transactions included in tables and raw data files can be attributed to confidential information that has been omitted from public reporting.
EMPEA’s reporting covers activity by long-term, fixed-life, private, direct investment funds, backed by institutional investors, across the following three asset classes: private equity, private infrastructure and real assets and private credit—collectively “private funds” or “private capital”. EMPEA data and statistics exclude activity from real estate funds, fund of funds, secondaries funds, traditional investment holding companies, corporate strategic investors, government-owned or managed entities and captive investment vehicles, as well as funds investing primarily in publicly-traded equity or debt securities.
Reported fundraising totals reflect only official closes (interim and/or final) as reported in primary and secondary sources or directly by fund managers. Capital commitments accruing prior to or between official closes are not included in reporting.
EMPEA classifies investments into one of three asset classes—private equity, private infrastructure and real assets or private credit—and into one of the following deal types: buyout, growth, venture capital, PIPE, mezzanine or debt. Venture capital includes seed, early-stage and late-stage investments. When determining how an investment should be classified, EMPEA takes into account the typical investment strategy of the fund manager(s) involved, the type of security acquired, the reported round number or type of transaction, the development stage of the company at the time of investment, the company’s business model and the type of product or service that the company provides.
Secondary investments (both traditional and direct) are excluded from reporting. In addition, wherever possible, bank (acquisition) financing and co-investment from excluded entities (mentioned in the first section of this note) are excluded from reported investment values, both to ensure continuity across regions and to provide a more accurate picture of the scale and pace of capital deployment by the funds that are the primary focus of EMPEA’s research.
EMPEA does not publish aggregate statistics on exit activity due to significant selection bias in the reporting of these transactions. Accordingly, exit data included in EMPEA reports and data products should not be treated as a comprehensive picture of all emerging markets exit activity, but as a sampling of exits from a given market or time period.
EMPEA data and statistics are compiled based on the “market” approach. Fundraising activity is categorized based on the countries, sub-regions or regions in which fund managers intend to invest, while investment activity is categorized based on the country headquarters of investee companies. For companies registered in offshore financial centers or developed markets, but operating exclusively or predominately in emerging markets, investment activity is categorized based on the geographic footprint of the operations of investee companies. In the case of global or multi-regional funds, only those funds investing primarily in emerging markets are included in fundraising totals (e.g., pan-Asia funds with a significant portion of capital intended for investment in China and India). Country-dedicated fundraising data and statistics reflect only those funds with a single-country strategy or mandate. Target allocations to individual markets within a broader global or regional fund are not attributed to single-country fundraising totals.
Regions in EMPEA reports are defined as:
- Emerging Asia: Asia Pacific (East Asia, Southeast Asia and South Asia), excluding Japan, Australia and New Zealand.
- Central and Eastern Europe (CEE) and Commonwealth of Independent States (CIS): European Union accession
countries (2004), Southeastern Europe (excluding Greece) and Turkey, as well as Russia and other CIS countries.
- Latin America: Mexico, Central and South America and the Caribbean (excluding Puerto Rico and other overseas
territories and departments).
- Middle East and North Africa (MENA): Gulf Cooperation Council (GCC), Iran, Iraq, Jordan, Lebanon, Palestinian
Territories, Syria and Yemen, as well as North Africa (Algeria, Egypt, Libya, Morocco, Sudan and Tunisia).
- Sub-Saharan Africa: Africa, excluding North Africa as defined above.
EMPEA’s fund and company sector classifications are based on the Industry Classification Benchmark (ICB), which is owned by FTSE International Limited (FTSE). FTSE® is a trademark of the London Stock Exchange Group companies and is used by FTSE under license. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB. Visit the ICB website for more details.
Abbreviations commonly used in EMPEA reports:
EM – Emerging markets
PE – Private equity
VC – Venture capital
GP – General partner (fund manager)
LP – Limited partner (fund investor)
In some exhibits in EMPEA publications, percentage labels may not sum to 100% due to rounding. In all tables in which it appears, “N/A” denotes a confidential or otherwise undisclosed value.