Private equity in emerging and developed markets: a comparative approach

Private equity is attracting ever-increasing amounts of capital. Estimations of capital collected range from USD 2.78 to 2.92 trillion. The actual figure could be significantly higher given amounts reserved or invested for direct and unsponsored private equity investments that aren’t counted.

This is partly because private equity has delivered comparatively high returns on a fairly consistent basis, and assisted by a shift in asset allocations to include private equity as an asset class. As higher quality data and information are increasingly available, thanks notably to eFront Insight, private equity is increasingly better known and understood. It can be included more easily in the portfolio of institutional investors such as insurance groups, pension funds or sovereign funds.

Fig. 1 – Breakdown of emerging and developed markets private equity funds (2001-2013)