Increase the risk, reap the rewards

Investing in emerging and frontier markets has often been considered too risky a venture for mainstr...

Investing in emerging and frontier markets has often been considered too risky a venture for mainstream private equity firms in the US and Europe. However, and partly for this reason, these markets have a huge potential for positive returns. Following a period of explosive growth, private equity investment in the major developed economies has in the past year been experiencing either a slowdown or reduced returns due to high valuation at entry. This slowdown has been brought on by a number of factors. A saturation of the market has meant that the low-hanging fruit have all been picked. Co...