What Really Lies Ahead for Emerging Markets Private Equity (June 2010)
Publication Date: June 2010
Source: EMPEA
To the observer, the press of bodies filling the halls of the Washington Ritz-Carlton in May might have been evidence that emerging markets private equity had experienced "a pretty good crisis." A record number of almost 800 delegates from over 50 countries attended the 12th annual Global Private Equity Conference, held in Washington on 11-12 May. Although the overall tone of the event was upbeat, sessions featured frank discussions about the myriad challenges facing GPs and LPs alike in a changed and changing world.

LPs Plan to Accelerate New Commitments to Emerging Markets Private Equity - Are They Serious? (June
Publication Date: June 2010
Source: EMPEA
The findings of the 2010 EMPEA/Coller Capital Survey suggested that investors are increasingly comfortable with the asset class and recognize that emerging markets private equity can generate strong returns to help fund pension and other obligations. Optimism surrounding the asset class is high -- over half (57%) of LPs currently invested in EM PE plan to accelerate their new commitments over the next two years -- but the reality is that general partners are still struggling to raise funds. Through mid-year 2010, EM PE fundraising is on track to match, but not significantly exceed, 2009 totals. The question remains, when will cash flows and commitments return to strength?

Inside Perspectives: An Interview with Aureos' Sev Vettivetpillai (June 2010)
Publication Date: June 2010
Source: EMPEA
Sivendran (Sev) Vettivetpillai, Chief Executive Officer of Aureos Advisers Limited (advisory company to Aureos Capital Limited), sat down with EMPEA's Research Team during the 12th annual Global Private Equity Conference to discuss developments within the asset class from a pan-emerging markets perspective, as well as changes underway at Aureos. Aureos currently manages US$1.2 billion of funds across 10 regional and 6 thematic private equity funds, established through 29 offices across Latin America, Africa and Asia.

Regulatory Brief, Including an AIFM Directive Update (June 2010)
Publication Date: June 2010
Source: EMPEA
A number of significant regulatory changes are afoot in the U.S. and Europe that will directly impact our members with operations and investors in those market, and likely influence emerging market regulators. Closely monitoring these developments, EMPEA provides a brief update on a number of issues in the spotlight including: * The European Union Alternative Investment Fund Managers (AIFM) Directive * South Africa's Taxation Laws Amendment Bill 2010 * The US Carried Interest Tax Debate * SEC Requirements for Registration of Investment Advisers

The ILPA Principles: How Will They Shape LP-GP Relationships in Emerging Markets (March 2010)
Publication Date: March 2010
Source: EMPEA
The ILPA Principles were released in September 2009 as a set of voluntary guidelines intended to establish best practices related to the alignment of interests between Limited Partners (LP) and General Partners (GP) around fund terms, transparency, reporting and fund governance. The Principles have since been endorsed by more than 100 institutions, including ten of the most active Development Finance Institutions (DFIs) investing in emerging markets private equity. In a world where emerging market funds battle for a share of an oftentimes smaller wallet, demonstrating clear alignment of LP-GP interests is more crucial now than ever before.

IFC's Experience in Emerging Markets Private Equity (March 2010)
Publication Date: March 2010
Source: EMPEA
The IFC's David Wilton draws on two decades of investment in emerging markets to share a myth-busting analysis of the true returns potential of emerging markets private equity investing. Key take-aways included are: - The opportunity is geographically much more diverse than the concentration of capital raising in Asia would suggest. There are both return and diversification benefits from taking advantage of the broader opportunity. - Emerging markets private equity is less risky than commonly perceived due to risk mitigants at the operating level. - To invest successfully, due diligence needs to go beyond examination of track record and into the fit between specific strategic approach and medium-term local conditions.

The AIFM Directive's Negative Impact on Developing Countries (March 2010)
Publication Date: March 2010
Source: EMPEA
Since 2009, the European Union (EU) has been considering a Directive to regulate Alternative Investment Fund Managers (AIFMs), including private equity fund managers and limited partners who invest in such funds. The stated intent of the Directive is to create supranational regulation of fund managers in order to minimize systemic (particularly cross-border) risk and enhance investor protections through greater transparency and other measures. The Directive as written includes provisions on capital requirements, the use of independent valuators and depositaries, disclosure requirements, limitations on leverage, and remuneration provisions. In addition, and of particular concern, are the third-party provisions that could greatly restrict or make it much more difficult for AIFMs based in emerging markets to raise capital in the EU, and for EU investors to invest in non-EU funds.

Agribusiness Private Equity: The Fertile Sector (December 2009)
Publication Date: December 2009
Source: EMPEA
The agribusiness sector presents investment opportunities far beyond farming—from crop and livestock production, through processing, packaging, storage and distribution, to marketing branded-food products. The scale and diversity of the agribusiness opportunity in emerging markets cannot be overstated.

2009 in Perspective and Predictions for 2010 (December 2009)
Publication Date: December 2009
Source: EMPEA
EMPEA solicited some of the industry’s leading practitioners for their reflections on 2009 and predictions for what lies ahead for emerging markets private equity.

“Jump Ball” for Limited LP Capital: Assessing Historical Returns in Times of Crisis (March 2009)
Publication Date: March 2009
Source: EMPEA
The ongoing financial crisis has severely depressed the prices for equity assets around the world, whether publicly or privately held. The prospect of declining entry valuations has led some emerging markets private equity investors to state that the 2009 and 2010 vintage years are likely to represent an “opportunity of a lifetime” for those limited partners (LPs) with the courage to commit new capital to these markets. How true is this likely to be? And compared to what, given the other investment opportunities that are available elsewhere?

Fundraising and Investment Slows Down Through Mid-Year (October 2009)
Publication Date: October 2009
Source: EMPEA
After bucking the global trend to raise a record-breaking US$66.5 billion in 2008, the emerging markets registered a dramatic slowdown in both new capital commitments and investment activity between January and June 2009 (1H).

RMB Funds—The Current State and Way Forward: A Legal and Tax Wish List (October 2009)
Publication Date: October 2009
Source: EMPEA
Recent headlines on interest in establishing RMB-denominated funds in China underscore the growing importance of issues relating to the coexistence of domestic and offshore fund sponsors and capital not only in China, but across the emerging markets.

Distressed PE: Is There an Attractive Investment Opportunity in the Emerging Markets? (October 2009)
Publication Date: October 2009
Source: EMPEA
The term “distressed” has become ubiquitous in light of a growing number of opportunities created by the dislocation in the credit markets. One limited partner (LP) active in distressed investing sums up the current landscape: “The model of good companies with bad balance sheets is quickly being replaced by great companies with terrible balance sheets.”

Now More than Ever: The Importance of Corporate Governance (March 2009)
Publication Date: March 2009
Source: EMPEA
The most notable emerging markets example of governance failure to emerge during the current crisis, India’s Satyam Computer Services reminded many investors of the risks inherent in investing in emerging markets.

Defying the Downturn? Fundraising and Investment Strong in 2008
Publication Date: March 2009
Source: EMPEA
Bucking global trends, 2008 saw the continuation of record-breaking fundraising for the asset class, albeit at a less dramatic rate of growth than in previous years. After nearly doubling between 2006 and 2007, capital raised by emerging markets-focused funds grew by 12% in 2008.

“Jump Ball” for Limited LP Capital: Assessing Historical Returns in Times of Crisis (March 2009)
Publication Date: March 2009
Source: EMPEA
The ongoing financial crisis has severely depressed the prices for equity assets around the world, whether publicly or privately held. The prospect of declining entry valuations has led some emerging markets private equity investors to state that the 2009 and 2010 vintage years are likely to represent ...

Plugging the Financing Gap: Is There a Growing Role for Mezzanine and Debt Funds? (June 2009)
Publication Date: June 2009
Source: EMPEA
EMPEA’s first quarter statistics confirm that the emerging markets have not been immune to a dramatic slowdown resulting from the global financial crisis. Both fundraising and investment figures have dropped in the first three months of 2009...

Stress Ahead for Emerging Market GPs and their LPs (December 2008)
Publication Date: December 2008
Source: EMPEA
How hard will the global financial crisis hit emerging markets private equity? This question is on the minds of many emerging market GPs and their LPs, as dour predictions for global recession pile up and liquidity becomes an ever scarcer resource.

EMPEA Members Survey: How the Global Financial Crisis is Impacting EM PE (December 2008)
Publication Date: December 2008
Source: EMPEA
In late October, EMPEA conducted a survey of its members to gauge the effects of the global financial crisis on the fundraising, investment and exit environments for EM PE, both now and in the near future...

The Outlook for EM PE Secondaries (December 2008)
Publication Date: December 2008
Source: EMPEA
Another by-product of the global financial crisis, the secondaries industry has grown in both prominence and value, as LPs seek liquidity to meet capital calls, to bring allocations in line, or to price their current portfolio as part of active asset management strategies.

Venture Philanthropy: A Private Equity Approach to Giving (September 2008)
Publication Date: September 2008
Source: EMPEA
The concept of venture philanthropy—leveraging private sector techniques to generate greater impact from charitable giving— is not a new one.

Natural Resources in Africa (September 2008)
Publication Date: September 2008
Source: EMPEA
Natural resource-related companies are becoming an increasingly prominent investment target for private equity funds on the back of long-term, continued growing global demand for such resources—particularly from emerging markets such as China and India.

Responsible Investment in Emerging Markets PE: Is Now the Time for ESG Standards? (September 2008)
Publication Date: September 2008
Source: EMPEA
From project finance to real estate development to public equities, investors are increasingly paying attention to a host of issues broadly categorized as ESG (Environment, Social, Governance). As the importance of extra-financial considerations has grown, so has the adoption of frameworks aimed at helping investors tackle ESG issues.

Rise of the Local Investor (June 2008)
Publication Date: June 2008
Source: EMPEA
The remarkable growth in commitments to private equity in emerging markets continues year after year, yet the bulk of capital is coming from North American and European investors. Historically domestic institutions have played a marginal role, and pension funds in particular have been under-represented.

LPs Continue to View Emerging Markets Favorably (June 2008)
Publication Date: June 2008
Source: EMPEA
The results of EMPEA’s 2008 Survey of Institutional Investors suggest yet another year of growth in commitments to emerging markets private equity (EM PE).

Benchmarking Performance: Challenges and Approaches for Emerging Markets (March 2008)
Publication Date: March 2008
Source: EMPEA


India: Can Private Equity Deliver Returns from Infrastructure? (March 2008)
Publication Date: March 2008
Source: EMPEA
While 2007 saw the global love affair with infrastructure blossom (19 infrastructure funds raised capital totaling US$19.9 billion—almost double that of 2006), some of the most ardent courtship can be found in emerging markets.

The State of Emerging Markets Private Equity: Turning a Corner (March 2008)
Publication Date: March 2008
Source: EMPEA
If 2006 was the year that emerging markets private equity regained the attention of institutional investors, the year 2007 will be remembered for a number of milestones in the development of the asset class.

You've Come a Long Way, Baby (December 2007)
Publication Date: December 2007
Source: EMPEA
Black Monday was much evoked in the business media this autumn of 2007, as investors recalled the steepest one-day drop in Dow Jones history. 2007 also brings an opportunity for anniversary-driven reflection for emerging market investors.

Growing Pool of EM Funds of Funds Diversifies (December 2007)
Publication Date: December 2007
Source: EMPEA
During the last two years, funds of funds focused on emerging markets private equity have burst onto the scene with over US$8 billion raised, dwarfing the approximately US$3.5 billion previously raised between 2000 to 2005.

EMPEA 1H07 Fundraising Statistics (September 2007)
Publication Date: September 2007
Source: EMPEA
The pace of fundraising for funds focused on emerging markets continues unabated in 2007, with 107 funds raising a total of US$21.1 billion in fresh capital through the end of June.

PE Real Estate Investing Booms in EM (September 2007)
Publication Date: September 2007
Source: EMPEA
Perhaps no image better captures the sense of boom time in emerging markets than the fleets of construction cranes crowding the skyline that are now a common sight in cities such as Beijing, Moscow and Dubai.

Institutional Investors’ Interest in Emerging Markets Private Equity Continues to Grow (June 2007)
Publication Date: June 2007
Source: EMPEA
Eighty-one institutional investors across an array of institutional categories and geographies participated in EMPEA’s 2007 Survey of Limited Partner Interest in Emerging Market Private Equity.

African Private Equity Warming Up (September 2007)
Publication Date: September 2007
Source: EMPEA
In the last two years, five significant funds representing over US$3 billion of capital have been launched for investing in the Africa region.

EMP Global’s Don Roth Shares His Views (June 2007)
Publication Date: June 2007
Source: EMPEA
As a way of providing further insight into the development of the emerging markets PE asset class, the Emerging Markets Private Equity Quarterly Review occasionally features interviews with pioneers in the EM PE space.

Understanding the Role of Investment Advisors in Manager Selection (June 2007)
Publication Date: June 2007
Source: EMPEA
For emerging markets private equity fund managers in search of capital, a crucial, but sometimes neglected or misunderstood, species in the fundraising ecosystem is the investment advisory firm (or investment consultant).

Emerging Markets Private Equity Funds Raise Over $33 Billion in 2006 (March 2007)
Publication Date: March 2007
Source: EMPEA
Robust growth in EM PE fundraising continued in 2006, albeit at a less explosive pace than in 2005.

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Regional Feature: The Middle East and North Africa (March 2007)
Publication Date: March 2007
Source: EMPEA
On the back of tremendous liquidity resulting from high crude oil prices and extraordinary efforts by leading local fund managers, a private equity industry is blossoming in the desert cities of the Middle East.