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of58PrivateEquityin
DevelopingCountries
PresentByContent123of58WHYHOWWHATof1of58LoadingWHYPrivateEquityDevelopingCountriesChina&India123of2of58WhyPrivateEquityAttractiveReturnMitigateRiskBusinessUncertaintyHard-to-valueAssetsInfoAsymmetriesof13Exhibit1of58WhyDevelopingCountries“Economicgrowthremainstheprimarydriverofincreasingemergingmarketprivateequitycommitments.
Source:
”2Exhibit2HighergrowthLowerleverageHighrateofjobcreationSupportforsmallercompany4of58WhyDevelopingCountriesEU36%
26%
Asia/Oceania
27%15%2Exhibit3For2023&2023,Asia/Oceania'sshareishigherthanboththeEU15andtheUSA5of58WhyDevelopingCountriesEmergingmarketsincreaseUSoneofcountriesthatdeclinedfastest2Exhibit4&5Theindexmeasures:sizeofgov,expenditures,taxes,enterprises,legalstructureandsecurityofpropertyrights,accesstosoundmoneyfreedomtotradeinternationallyregulationofcredit,labor,andbusiness6of58WhyDevelopingCountriesExhibit6&7BoththeBreadthandtheQualityoftheEmergingMarketPrivateEquityOpportunityhaveImprovedSince2023.278of58WhyDevelopingCountriesAttractivenessofDevelopingCountriesEconomicProgressEconomicReformPlannedCapitalist1989BradyPlanRestructureexternaldebtBoosteconomichealthIncreaseinvestorconfidenceTaxReformLowertaxoncapitalgainsRelaxRestrictionofForeignInvestmentEncourageequityinvestment&stockmarketgrowthImproveAccounting&DisclosureStandardsLowerinvestingcostsDiminishinfoasymmetriesof28of58WhyChina&IndiaEmergingAsianmarketsNO.1attractivedestinationsforglobalinvestorsChinaNo.1investmenttargetfor9consecutiveyearsIndiaNo.2
investmenttargetRisingMiddleClassUrbanMigrationIncreasingMarketDemand310of58WhyChina&India311of58LoadingHOWFundraisingInvestingExiting12314of58HowFundraising–FundStructureLimitedliabilitypartnership
UndertheoldPartnershipLaw,onlyunlimitedliabilitypartnerships werepermissible.Legalpersonpartners
TheamendedPartnershipLawallowsbothlegalpersonsand individualstoinvestinpartnerships119of58HowFundraising–CapitalSourceInstitutionalInvestorsWiththeexceptionofinvestmentstargetedtowardsinfrastructure,regulationsdon’tpermitconventionalsourcesofPEcapitallikeinsurancecompaniesandpensionfundsinIndiatoparticipateinPE.DomesticPEfirmsarelimitedtoraisingfundfromnon-financialinstitutions.IndividualInvestorsDomesticPEfirmsarelimitedtoraisingfundfromaffluentindividualinvestors.121of58HowFundraising–CapitalSourceNewPEplayerindevelopingcountryUSforeignaid(eg.,USAID),UN,WorldBank,IIC,CDCGov.investmentarm:EBRD,DEG,FMO,Norfund,Quasigovcorp.(eg.OPIC)Multilateralfinancialinstitutions(eg.IFC)2foldroleInvestinFundsasdirectgrant/LTloanProvideguarantee122of58HowFundraising–CapitalSourceWhyLocalBasedFundlanguagelocalnetworksexperienceattopUS-basedinstitution124Foranyofthelargeprivate-equityfirmsintheWesttobearealplayerinChina,youprobablyshouldhaveaRMB-dominatedfund.“”--DavidRubensteinof58HowInvesting:TypesofInvestment227of58HowInvesting:TypesofInvestmentPrivatizationsImprovetheproductivityofSOE(<<privatefirms)Accessinvestmentcapital&ImproveservicedeliveryReducethefiscalburdenofloss-makingfirms229of58HowInvesting:TypesofInvestmentPrivatizations--DevelopingCountries2Exhibit13Privatizationindevelopingcountries.30of58HowInvesting:TypesofInvestmentPrivatizations--Post-CrisisDevelopment233of58HowInvesting:TypesofInvestmentInfrastructureFunds:MacroNeeds2Exhibit16Macroneedsofinfrastructurefunds.42of58HowExiting346Exhibit17ExitchannelsinChinaandIndia,2023-2023of58LoadingWHATOpportunitiesChallenges12352of58WhatOpportunities154Cleantech,e.g.:renewableresources,recyclingandpollution-controlequipment.Conversationsaroundwatercoolersarenotabout
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