Is Emerging Markets Private Equity Dying?

One evening a few years ago, as our train hurtled toward New York City, a colleague and I were discussing some inauspicious trends in emerging markets private equity. At one point I turned and declared, “the industry is dying.”

Fast-forward to Portico’s founding, and I’ve finally had a chance to investigate whether that spontaneous remark was specious or spot on.

Through a series of charts, Portico's first research piece—Is Emerging Markets Private Equity Dying?—reveals that a number of existential challenges are besetting the EM PE industry. Of particular note is the market failure in the supply and demand for capital amongst small-cap and mid-market funds.

I hope that you enjoy this piece, and that it sparks a search for solutions to the industry's challenges. Do please drop us a line to let us know what you think—we'd love to hear from you.

Best wishes,
Mike

Read it now →

Findings from Is Emerging Markets Private Equity Dying? include:

The volume of capital raised annually has been stagnant since 2011, while the number of growth equity funds achieving a close declined by 30% between 2010-15.
Fewer first-time funds are achieving a final close, and they’re not getting help from development finance institutions—DFIs are committing to more funds IV+ than to Funds I, II, or III.
There are more “zombie” funds than viable GPs—56% of the firms that raised a fund between 2005-09 have failed to raise a follow-on fund.
Venture and credit funds are gaining traction, as are “impact investing” funds; and, in their quest to reduce fee drag, large LPs are bypassing funds for platforms.
And more!

Download the report for your next flight →

Is Emerging Markets Private Equity Dying?

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