Why emerging markets need more private equity
This week, the Emerging Market Private Equity Association (EMPEA) is gathering in Washington for its annual meeting, generating considerable discussion about the state of the industry and the merits of investing in some of the world’s poorest places. In this piece on Medium, Brooks Preston, OPIC’s Vice President of Investment Funds, highlights some of the ways private equity can support development.
“When Silverlands Funds invested in a cattle ranching business in Zambia, it helped grow the farm’s herd by more than 30 percent in a single year. Alsis Fund’s investments in housing in Mexico supported the creation of multiple low-income housing projects that provided thousands of affordable homes. Sarona Frontier Markets Fund, a “fund of funds,” has supported various portfolio companies across a variety of sectors that have yielded many benefits in the developing world, including helping a school in Egypt create a special program to subsidize tuition for Syrian refugees,” Preston writes.