Capital flow to the so-called emerging BRICs has been growing since the mid-2000s, driven by the strong performance of the asset class and the increasing appetite of institutional investors for alternative investments in emerging markets, according to a new whitepaper from Siguler Guff titled, Private Equity Opportunities in the BRICs and Beyond.
The paper reveals that investment opportunities in Russia as well as the other BRIC (Brazil, Russia, India, and China) countries are likely to dominate future fundraising as these four countries climb to the top of global economic power and growth rankings.
Consumer oriented sectors and services among the attractive areas for investing, says the report. Emerging market PE as an asset class “shows strong potential for better returns and better downside protection than the public markets”.
The key to success, according to the report author, “Patience, selectivity and a deep local understanding of the macroeconomic, regulatory and private equity dynamics in each market are key ingredients to investing successfully in the emerging markets”. (Image source: Siguler Guff)