RT Journal Article
SR Electronic
T1 Private Equity in Emerging Markets: <em>Yesterday, Today, and Tomorrow</em>
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 8
OP 20
DO 10.3905/jpe.2016.19.3.008
VO 19
IS 3
A1 Josh Lerner
A1 Jake Ledbetter
A1 Andrew Speen
A1 Ann Leamon
A1 Chris Allen
YR 2016
UL https://pm-research.com/content/19/3/8.abstract
AB This article examines quantitative data on economic growth, market composition, deal structures, exit opportunities, and manager performance in emerging markets relative to developed markets. We find that despite recent downturns, emerging markets are experiencing overall rapid growth. Moreover, private equity investments appear to focus on companies in high-growth sectors that are underrepresented in public markets, thereby allowing limited partners more balanced exposure to a country’s economic drivers. Furthermore, we find that minority investments in private companies tend to perform on par with majority positions. Finally, because fund manager performance varies widely but also exhibits some consistency, our findings stress the importance of manager selection.TOPICS: Private equity, emerging, statistical methods, manager selection