Practical Applications of Mature and Not Mature Enough: Comparing Private Equity in Developed and Emerging Markets

Practical Applications Summary

In Mature and Not Mature Enough: Comparing Private Equity in Developed and Emerging Markets, which appeared in the Spring 2019 edition of The Journal of Private Equity, Darek Klonowski of Brandon University compared the current trends in the private equity industry in both developed and emerging markets. He found that both markets are proceeding along a developmental track from initiation to growth, maturity, and eventual decline. However, developed and emerging markets differ in their phases and, therefore, in their associated challenges in this process. Private equity in developed countries is mature, and is experiencing slowing and even declining returns. In contrast, private equity in most developing countries is still in the growth stage of development but is proceeding along the evolutionary trajectory in unpredictable ways. Both situations present challenges for general partners and limited partners looking to invest in private equity.

TOPICS: Private equity, developed, emerging, equity portfolio management