Emerging Markets Private Equity Survey
Investors' Views of Private Equity in Emerging Markets

The annual survey is a snapshot of private equity trends in emerging economies and provides an overview of investors' (Limited Partners') plans and opinions in relation to emerging markets.

The 5th edition of the survey captures the views of 156 private equity investors from around the world. The 2009 survey highlights the following:

• LPs believe emerging markets will continue to present attractive investment opportunities over the next year.
• Investors believe that recent-vintage EM PE funds will outperform equivalent developed market funds because of a lower reliance on debt to finance transactions and continuing – albeit slowing – economic growth.
• LPs with current EM PE exposure plan to commit to additional geographies and/or additional managers over the next few years, despite cash constraints and heightened risk concerns.
• New investors will enter emerging markets more slowly in 2009; those holding back cite concerns about EM PE risk and claim they have insufficient internal resources to evaluate managers.
• The average risk premium for EM PE funds has risen to 7.2% from 6.7% in 2008.
• Brazil is ranked by LPs as the second most attractive emerging market for private equity investment over the next year, after China. Russia/CIS is ranked as the least attractive.

The 2009 and previous years' surveys are available below.