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Emerging Markets Help Drive LP’s Stellar Returns


January 16, 2014

Your DealMarket Digest editor has an eye for smart money investing. An excellent source is Financial News, which this week reported that the asset management arm of International Finance Corporation  (IFC), which is a part of the World Bank, has mastered the art of selecting private equity managers in the world’s upcoming economic regions.


The emerging market veteran has a portfolio generating an internal rate of return of 18.3% a year between the start of 2000 and June 2013. FN says that compares with a 9.6% return for the average fund in Cambridge Associates’ table of emerging-market private equity funds and 8.9% a year for the MSCI Emerging Markets index.


While other institutional investors have been wary, the IFC has been doing PE investing in emerging economies for over a decade. This strategy has apparently helped the fund avoid some of the macro shocks in Europe and the US. The IFC says that its strong results come a template due diligence process that is open to first-time teams. The IFC has 30 staff covering the globe, enabling its strong performance.

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