Private Equity Investments in Emerging Markets

Business & Finance, Management & Leadership, Management
Cover of the book Private Equity Investments in Emerging Markets by Benjamin Heckmann, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Benjamin Heckmann ISBN: 9783640416066
Publisher: GRIN Publishing Publication: August 31, 2009
Imprint: GRIN Publishing Language: English
Author: Benjamin Heckmann
ISBN: 9783640416066
Publisher: GRIN Publishing
Publication: August 31, 2009
Imprint: GRIN Publishing
Language: English

Seminar paper from the year 2007 in the subject Business economics - Business Management, Corporate Governance, grade: 2,0, University of Münster (International Management), course: Seminar International Finance, language: English, abstract: The paper deals with Private Equity Investments in Emerging Markets. This asset class is associated with attractive opportunities and appropriate risk-adjusted returns. The Private Equity industry in Emerging Markets showed strong growth over the last few years - after a period of disappointment and unmet expectations. Private Equity is a primary source of equity for small and medium sized companies. It is associated with higher default risk but offers the opportunity to receive higher returns. One special characteristic is the provision of 'smart money', the integration of investment banking and management consultancy. The environment of Emerging Markets is challenging. The term refers to capital markets in developing countries with outstanding growth opportunities. 35 countries from Latin America, Central and Eastern Europe, Asia, Middle East and Africa belong to the group of Emerging Markets. These markets are characterised by weak legal institutions, political and economic risk, dysfunctional capital markets and a low standard of corpo-rate governance. The combination of the high risk asset class Private Equity with the high risk environment of Emerging Markets results in high risk investments. But the superior return op-portunities attract more and more investors. After a period of disappointment and setbacks - due to an inappropriate approach - at the beginning of the 21st century this asset class took off. Fundraising figures from 2003 to 2006 are increasing strongly and the investors expect the growth to continue. The macroeconomic environment, the legal framework and the quality of capital markets are the main determinants for Emerging Markets Private Equity. The introduction of good corporate governance is essential for the provision of a hospitable investment climate. If the legal framework is weak, efficient governance structures can serve as a substitute. Intensive due diligence, monitoring, involvement, networks, diversification and exiting are the key success factors for Private Equity firms engaging in Emerging Markets. With an appropriate adjustment of the strategy, risk can be mitigated and the investment is likely to be successful. Emerging Markets Private Equity can be beneficial for both the investors and the entrepreneurs. Especially small and medium sized enterprises and family-owned companies in Emerging Markets benefit from this source of equity while investors receive potential extraordinary returns and diversify their portfolio.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2007 in the subject Business economics - Business Management, Corporate Governance, grade: 2,0, University of Münster (International Management), course: Seminar International Finance, language: English, abstract: The paper deals with Private Equity Investments in Emerging Markets. This asset class is associated with attractive opportunities and appropriate risk-adjusted returns. The Private Equity industry in Emerging Markets showed strong growth over the last few years - after a period of disappointment and unmet expectations. Private Equity is a primary source of equity for small and medium sized companies. It is associated with higher default risk but offers the opportunity to receive higher returns. One special characteristic is the provision of 'smart money', the integration of investment banking and management consultancy. The environment of Emerging Markets is challenging. The term refers to capital markets in developing countries with outstanding growth opportunities. 35 countries from Latin America, Central and Eastern Europe, Asia, Middle East and Africa belong to the group of Emerging Markets. These markets are characterised by weak legal institutions, political and economic risk, dysfunctional capital markets and a low standard of corpo-rate governance. The combination of the high risk asset class Private Equity with the high risk environment of Emerging Markets results in high risk investments. But the superior return op-portunities attract more and more investors. After a period of disappointment and setbacks - due to an inappropriate approach - at the beginning of the 21st century this asset class took off. Fundraising figures from 2003 to 2006 are increasing strongly and the investors expect the growth to continue. The macroeconomic environment, the legal framework and the quality of capital markets are the main determinants for Emerging Markets Private Equity. The introduction of good corporate governance is essential for the provision of a hospitable investment climate. If the legal framework is weak, efficient governance structures can serve as a substitute. Intensive due diligence, monitoring, involvement, networks, diversification and exiting are the key success factors for Private Equity firms engaging in Emerging Markets. With an appropriate adjustment of the strategy, risk can be mitigated and the investment is likely to be successful. Emerging Markets Private Equity can be beneficial for both the investors and the entrepreneurs. Especially small and medium sized enterprises and family-owned companies in Emerging Markets benefit from this source of equity while investors receive potential extraordinary returns and diversify their portfolio.

More books from GRIN Publishing

Cover of the book The Art of Telling Truth: Power, Language and the Experience of the Exterior in Michel Foucault by Benjamin Heckmann
Cover of the book Australian rural life - Did the bush barbarise its settlers? Major Essay by Benjamin Heckmann
Cover of the book Project management - The project 'Nunca mais en viveiro' by Benjamin Heckmann
Cover of the book Geology Adventures by Benjamin Heckmann
Cover of the book Hemingway and Stein. Gertrude Stein's Influence on Ernest Hemingway's For Whom the Bell Tolls by Benjamin Heckmann
Cover of the book Speisung der Viertausend (Mt 15,32-39). Eine semiotische Analyse by Benjamin Heckmann
Cover of the book Sibling Constellations in 'White Teeth' (2000) and 'Britz' (2007) by Benjamin Heckmann
Cover of the book The diseased city - Images of the body in expressionist and futurist poetry by Benjamin Heckmann
Cover of the book New Views on Cameroon English by Benjamin Heckmann
Cover of the book Rhetoric in the Middle Ages: Geoffrey Chaucer's 'The Parliament of Fowls' by Benjamin Heckmann
Cover of the book Laura Mulvey, Visual Pleasure and Narrative Cinema by Benjamin Heckmann
Cover of the book The concept of 'field' and 'gap' by Benjamin Heckmann
Cover of the book 'Chicano English' and 'Türkendeutsch': A comparison of two ethnic dialects by Benjamin Heckmann
Cover of the book Which framework serves best for the relationship between the concepts of Orientalism and Occidentalism? by Benjamin Heckmann
Cover of the book Differentiation between inpatriation and expatriation: Factors of success and failure of inpatriation by Benjamin Heckmann
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy