Sarona Asset Management and ImpactAssets make the case for private equity in the emerging markets

Sarona Asset Management and ImpactAssets released a joint article arguing that private equity makes a positive difference in emerging and frontier markets while earning solid financial returns.

The article contends that investors in emerging markets have experienced lower volatility with more consistent financial performance than those invested in developed capital markets. Likewise, private equity, while not immune to market forces, has delivered more stability and been less correlated to major public markets. By bringing these factors together- emerging markets and private equity – investors have been able to generate both stronger growth and lower volatility.

A new breed of private equity investor is adding a third element that not only boosts financial performance, but also delivers positive social and environmental impact. These investors are discovering that by building upon the decades-long experience of development finance institutions (many of which have used public funding to finance enterprise creation in emerging markets) they can deliver capital while pursuing sustainable, long term returns for investor and other stakeholders alike.

The full article may be accessed here.