Private capital deal values rose in growth markets in 2024
The value of private capital deals rose by 19 per cent across emerging and growth markets last year despite a 19 per cent drop in the number of deals closed.
According to new data from the Global Private Capital Association (GPCA), this growth was driven by big-ticket private equity and infrastructure investments in Southeast Asia, Latin America and Central and Eastern Europe (CEE), as well as a global uptick in private credit investments.
Across all emerging and growth markets, just over $11bn (£8.73bn) was invested in private credit strategies in 2024, up from $7.2bn in 2023.
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The rise in private credit investing was particularly pronounced in the Middle East, where private credit accounted for nine per cent of all private capital deployed in the region. This was led by Francisco Partners’ $90m investment in Property Finder.
Fund managers raised $953m for Middle East-dedicated strategies in 2024, with private credit funds representing 31 per cent of the total.
Across all emerging and growth markets, CEE saw the largest increase in private capital investments, with the GPCA reporting a 187 per cent year-on-year rise. This was driven by a number of high-value deals including CVC’s buyout of Hungary-based Partner in Pet Food.
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Meanwhile, Latin America saw a record $15.3bn invested in real assets dealmaking, largely as a result of major infrastructure and natural resources investments. Southeast Asia also reported record investments of $4.4bn, mostly in equity and project financing.
The GPCA noted that investor confidence in private markets appears to be strengthening as monetary conditions stabilise, valuation gaps narrow and macro visibility improves. However, the firm warned that new policies emanating from the White House could complicate the picture in 2025.
The GPCA’s 300+ members manage approximately $2tn of assets across 130 countries.
