EMPEA Reports: Global Investors' Outlook on Emerging Markets and Currency Risk Mitigation to be discussed at Global Private Equity Conference

WASHINGTON, May 7, 2018 /PRNewswire/ -- The Emerging Markets Private Equity Association (EMPEA) has released two reports on global investors' sentiment toward emerging markets and currency risk mitigation. Please see below for more information summarizing the findings.

These reports, as well as many other critical topics will be part of the discussions at the IFC's 20^th Anniversary Global Private Equity Conference in association with EMPEA on 15-16 May in Washington, D.C.

We invite you to join the conference with a complimentary press pass. To request a press pass, please contact Leela Vosko at [email protected].

The International Finance Corporation (IFC) of the World Bank Group and EMPEA will welcome keynotes such as David Rubenstein of The Carlyle Group; Ellen Johnson Sirleaf, 24th President of Liberia, first female head of state in Africa and Nobel Laureate; Pascal Lamy, Former Head of the WTO, Mo Ibrahim, Chairman, Mo Ibrahim Foundation; and many others. We will be curating a variety of sector- and region-specific discussions for more than 900 conference delegates comprising private equity fund managers, institutional investors, advisors and government officials more than 60 countries. 

View the Full Global Private Equity Conference Agenda »

Recently Released EMPEA Reports:

2018 Global Limited Partners Survey – The 14th annual edition of EMPEA's Global Limited Partners Survey analyzes the views of 107 limited partners (LPs) on the current conditions and future outlook for emerging markets private equity (EM PE).

Key findings:

• A higher proportion of respondents plans to increase the dollar value of their commitments to EM PE than in any edition of the survey since 2014, suggesting cautious optimism may be in order for EM-focused fund managers.
• When asked why they plan to commit more to EM PE opportunities, 58% of survey respondents indicated they are seeking greater diversification in their PE portfolio, up from 38% of respondents in the 2014 survey. In contrast, half of respondents in the 2015 survey planned to increase their commitments because they expected PE to outperform other EM investment opportunities.
• Southeast Asia has regained the top spot in EMPEA's market attractiveness rankings, followed by India and China, forming a top three exclusively comprising markets in Emerging Asia.

Download the Full Survey Report » (PDF)
View a Presentation of Top Findings » (PDF)
Listen to a Recording of a Webcast Discussion of the Report » (Video)

Expanding Institutional Investment into Emerging Markets via Currency Risk Mitigation  - A project funded by USAID where it partnered with lead organization Sarona Asset Management as well as Crystalus Inc. and EMPEA, the purpose of the report was to identify new solutions to currency risk, a key deterrent for investors considering long-term private equity opportunities in emerging markets.

• The chance that financial returns could diminish or even disappear when converted back into U.S. dollars or euros limits the available capital that could otherwise be invested in growing businesses around the world to create jobs and spur economic development.
• Several promising pathways were identified in the report, including insurance and tailored proxy hedging, which aligned well with both general partner (GP) and limited partner (LP) criteria for viability.
• The tailored proxy hedge showed the most potential, and, consequently, it was piloted in a back-testing simulation using two actual EM fund manager portfolios. The partners and industry participants are optimistic about the results that demonstrated significant protection in certain economic stress events.

Download the full report » (PDF)
Read the press release » (PDF)

SOURCE Emerging Markets Private Equity Association (EMPEA)