Broadening the geographical scope of a portfolio: the case for Eastern Europe

eFront Software Solutions2017 Front Line Newsletters NewsBroadening the geographical scope of a portfolio: the case for Eastern Europe

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October 5 , 2017 | Posted by eFront Solutions |

Broadening the geographical scope of a portfolio: the case for Eastern Europe

Few people, when investing in a ‘risky’ asset class, wish to compound the risk by allocating to a less developed region. As such, the private equity map of the world would show North America and Western Europe as monstrously huge, and the rest of the world in, almost literally, unchartered territory.

Those with a more sophisticated conception of risk will see opportunity in this misguided cartography.

For one thing, these great Western markets aren’t as big as they seem, and as a result, they are increasingly crowded. And for another, less mature markets aren’t necessarily more risky. Particularly when used as part of a balanced portfolio, exposure to such regions can improve the risk-return profile.

With this in mind, our latest edition of Frontline uses Pevara data to assess the relative attractiveness of Central and Eastern European private equity.

As ever, if you have any comments about our analysis or questions about Pevara, don’t hesitate to get in touch.

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