Wednesday, August 27, 2008

Emerging Market , Private Equity , International Financial Corporation

Emerging market is a new destination for successful PE funds. Most of the SME of Emerging Asian market is drawing a substantial ammount of PE funds. At the same time,Private equity is becoming an increasingly important sector globally, in emerging markets. In fact, the past year was a remarkable one for emerging markets private equity: fund raising for the asset class tripled, driven largely by a strong rise in exits and cash returned to international investors. The numbers were up for all regions.

Perhaps even more telling, the picture that is taking shape today is fundamentally different from before: private equity in emerging markets is no longer considered an exotic asset class. Private equity professionals are breaking down the borders of investing by bringing innovation in investment, and recognizing that globalization is transforming the private equity business.

Emerging market is also redefining International Financial Corporation (IFC) role in the sector

Over the past 20 years, IFC's had experienced that there is a strong relationship between fund performance and development impact, and that the quality of the fund manager is the main driver of performance. Consequently, IFC's current investment strategy for funds has a strong focus on experienced teams with a proven good track record. It also seeks managers who add commercial value to the companies in which they invest, rather than just supplying capital.

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