The white paper, titled, Private Equity Opportunities in the BRICs and Beyond, has bought out the fact that investment opportunities in Russia as well as the other BRIC (Brazil, Russia, India, and China) countries are likely to dominate future EMPE fundraising.
It also added that the BRIC countries, which already rank in the top 12 global economies, are projected to be in the top six global economies by 2018.
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The EMPE asset class is also shown to have a strong potential for better returns and better downside protection than the public markets.
Ralph Jaeger, managing director, Siguler Guff, and the author of the report remarked, "Private equity strategies allow investors to access some of the most compelling growth segments of emerging markets that are often inaccessible through public markets. Entry valuations in private BRIC companies also tend to be more attractive than those of investments in public equity."
Inflows into EMPE have also been observed to have had good growth since the mid-2000s, due to the strong performance of the asset class and the increasing appetite of institutional investors for alternative investments in emerging markets.
Jaeger also attributed the strong performance of the asset class to the improving quality of local private equity managers, rapid growth of private companies, value arbitrage versus the public markets, and the resilience of private equity performance both during and after the global financial crisis.
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