Private equity (PE) is a critical source of financing for companies in emerging market economies, making possible positive development outcomes while simultaneously providing investors with the opportunity to achieve superior financial returns.
The term private equity encompasses growth capital, venture capital, leveraged buyouts and mezzanine investments. PE funds greatly improve access to the funding that innovative small and medium-sized enterprises (SMEs) require to grow their businesses, leading to positive impacts such as employment, tax payments and increased service availability.
Given the core facets of the PE model – active ownership, often of minority stakes, in private businesses seeking not only capital but also enhanced governance or more professionalized management, over a period of several years – private equity investors seek clarity and consistency around securities law and minority investor protections, as well as fair and equivalent treatment for all providers of capital regardless of mode of investment or country of origin.
What Industry Leaders Have to Say About Private Equity
George Siguler, Managing Director and Founding Partner of Siguler Guff, discusses the difference between public and private investment in emerging markets.
In addition to our own resources, EMPEA welcomes suggestions and submissions of content for consideration from both members and non-members. If you have an industry resource you would like to share with a targeted audience of EM PE professionals, please submit the information to Holly Radel at radelh@EMPEA.net.
An explanatory video from Privcap’s David Snow about the fundamentals of the private equity industry.
A presentation outlining the growth-oriented PE opportunities from the International Finance Corporation (IFC).