Since inception, Turkish private equity funds have recorded a return of 1.61x (TVPI), above the levels seen in Western Europe (1.46x) and the US (1.5x) and well above the 1.25x for south-east Europe. Turkish private equity funds also show lower selection risk than Western European and US counterparts. This performance comes despite the relative immaturity of the private equity market in the region, showing that integrating Turkey into a broader geographical category, and so being able to allocate to Turkish funds when they come to the market, could be a compelling strategy.
In three decades, private equity has developed from a cottage industry managing an estimated hundred billion of dollars to a fullyfledged asset class with close to three trillion of assets under management. This fast growth has been relatively immune to macroeconomic booms and busts, but it is unclear how long this rapid development can continue.
Have you ever wanted to know how sophisticated your approach is to private equity fund investment?
Are you a rule-taker or a king-maker?
Is your approach top-down, bottom-up? Are you a portfolio construction explorer or a master portfolio builder?
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.
Distressed debt investing is arguably the strategy that capitalizes the most on downturns
“If you want peace, prepare for war”, goes the Latin military adage 1. It could well apply to the preservation of wealth during a stock market correction or a recession by planning when the economic environment is benign. Private equity offers interesting strategies for such a purpose, helping investors capitalize on opportunities while other assets suffer from the downward phase of a macroeconomic cycle.