Private Equity Focuses on Emerging Opportunities

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Emerging Markets

While developed markets flounder in a post-crisis quagmire of sovereign debt, developing markets are enjoying much better times - and private equity investors have taken note. According to the International Finance Corporation, the private sector arm of the World Bank, the outlook for private equity investment in emerging markets is bright, with firms being attracted by higher growth prospects and the much lower debt burden enjoyed by emerging markets.

Speaking at the IFCs 12th annual Global Private Equity Conference in Washington, DC, held in association with the Emerging Markets Private Equity Association (EMPEA), IFC executive vice president and CEO Lars Thunell said developing countries were proving more attractive than ever to private equity investors (see Corporate Finance News, page 83).ThuneLl's enthusiasm is understandable: The IFCs $2.6 billion private equity portfolio, which has invested capital in some of the world's poorest countries, produced an internal rate of return of approximately 18% between 2000 and 2009. …