PE investors bullish on emerging markets; to hike investments

by Dave

Markets-The Economic Times

According to Emerging Market Private Equity Association, institutional investors believe emerging markets will continue to present attractive investment opportunities in the coming year and plan to maintain or expand their exposure.

“Investors recognise that emerging economies are the only ones still growing, and they also know that, since private equity deals in emerging markets do not rely on debt, the collapse of the global leveraged finance markets will not impede deal flow,” EMPEA President Sarah Alexander said.

Of the BRIC (Brazil, Russia, India, China) economies, the fund partners ranked Brazil as the second most attractive destination for investment in the next 12 months behind China and just ahead of India, according to a survey by EMPEA.

In India transactions are in the form of equity with no debt component. In contrast, the US and the Europe focussed funds are more into leverage buyouts for which they raise bank loans,” Venture Intelligence CEO Arun Natarajan said.

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