Why institutional investors are growing more comfortable with emerging markets
“As of this year, the 10-year average emerging market private equity returns are roughly comparable with developed market PE returns,” Brooks Preston, OPIC Vice President of Investment Funds, wrote in this recent piece in Financier Worldwide.
One of the key ways OPIC supports development in emerging markets is through its support for emerging market private equity funds, and Preston takes a look at some of the recent changes in the emerging market private equity sector, as well as the key role played by development finance institutions like OPIC.
“Even though emerging markets generate more than 50 percent of GDP, it will probably be many more years before emerging markets capture 50 percent of the private equity LP purse. In the meantime, a growing number of emerging market pioneers will be laying the groundwork, managing the risks and encouraging the returns of private equity opportunities in the high growth economies of a dynamic world,” Preston writes.