New BCG/IESE study sees emerging markets "come of age" as returns improve

The study, surveying 176 emerging markets PE funds, found these contributing 30% of deals in 2009, with the US contributing 34% and Europe 38%. By value, the study found that emerging markets also accounted for 5% in 1998, but by 2009 accounted for 21% - the highest share so far, against just 8% in 2007 and 14% in 2008. The study also found that average returns of 5.3% from emerging markets PE in the 1990s have risen since 2000 to some 17.3%. Identifying China as "the stand-out country" for investment, the report also concluded that established global GPs will have few intrinsic scale advantages in emerging markets, and that local GPs will grow aggressively.

"The overriding conclusion of the study is that emerging markets have come of age for private-equity investors," Heino Meerkatt, a senior partner and MD at BCG, and a leader of the study, said publicly. "Our findings also signal a new age for private equity, with a new center of gravity and different rules, plus potentially very different players in the future,

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• Topics
• Performance
• GPs
• International Finance Corporation