Emerging markets private equity investments are increasingly being considered by many investors. Profitable and worthwhile opportunities in emerging markets private equity can be pursued, which are differentiated from public markets investments. The risks involved in investing in private equity (country, political and economic risks, market risks, and location-specific company risks) can be effectively dealt with through a number of approaches, including by investing in a diversified portfolio of private equity funds.
Often referred to as the “final frontier” market by private equity investors, Africa is showing signs of promise due to its rapidly improving economic environment, favorable demographics and growing private sector business activities. Investors who are diligent in their research of investment opportunities have been able to realize outsized returns while minimizing perceived risks.