Views from the Field on Assessing the Impact of Declining Oil Prices on EM PE

Over the last six months, crude oil prices have fallen from over US$100 to less than US$50 per barrel. While the macroeconomic effects of this decline—falling commodity prices, currency volatility, trimmed economic growth forecasts and more—are far-reaching and varied, particularly in emerging markets, the effect of this drop on the private equity (PE) industry, an inherently long-term asset class, is arguably more nuanced. EMPEA reached out to members to solicit their views on how shifting oil prices have affected their PE portfolios and deal pipelines, and what impact this shift will have on the PE industry in the emerging markets in which they are active.

The LP View
Richard Rincon, Investment Officer, EM PE, UTIMCO

The Global View
Erik Bethel, Managing Director, Darby Private Equity

The View from Russia
Mike Calvey, Founder and Senior Partner, Baring Vostok Capital Partners

The View from Southeast Asia
Andrew Affleck, Managing Partner, Armstrong Asset Management

The View from Nigeria
Cyril Odu, Executive Partner and Head of Energy, African Capital Alliance

Two Views from MENA
Amjad Ahmad, Chief Executive Officer, NBK Capital Partners, and Nabil Triki, Co-Head of Private Equity, Swicorp