Emerging Markets Opportunities for Private Equity: Exploitin New Frontiers
Table of Contents
Foreword
Executive Summary
Chapter 01: Positioning for the recovery in global emerging markets
- The impact of the crisis
- The relative position of emerging market countries
- Sourcing and screening deals
- Impact of the crisis on emerging market sectors
- Sectors that offer growth and future sustainable returns
- The level of the current recovery from the crisis
- Conclusion
Chapter 02: Due diligence and valuation
- Business intelligence
- Due diligence
- Checking for fraud
- DCF valuation of targets
- Relative valuation of targets
- Valuation of portfolios
- Conclusion
Chapter 03: Financing – a flight to quality
- The state of fundraising for emerging markets
- LPs struggling with liquidity
- The flight to quality by LPs and institutional investors
- Impact on the secondaries market
- Avoiding failed fundraising strategies
- The outlook for financing and fundraising
- Conclusion
Chapter 04: China – a long term dragon story that is never old
By Stephen De Prêtre, Managing Director, Sapphire Group Asia
- Introduction
- Impact of the recession on the economy and PE
- China’s macroeconomic importance
- The best sectors in China for PE
- Fundraising
- Corruption and lack of transparency in China
- Valuations
- PE exits
- Conclusion
Chapter 05: India – an essential asian strategy
- Introduction
- A review of Indian PE
- India compared with China and South East Asia
- Indian macroeconomics
- Screening for deals
- The most attractive sectors for investment
- Competition
- PE growth funding in India
- India PE-financed overseas expansion
- Transparency and corporate governance
- Deal entry multiples
- Exits
- Achievable returns
- Indian PE outlook
Chapter 06: South East Asia – the road from Jakarta to Hanoi
- Introduction
- Regional macroeconomics
- The most promising countries in SEA
- The best sectors in SEA
- Competition
- Deal screening
- Bureaucracy and corruption
- Growth funding
- Entry multiples, returns and profit repatriation
- Exits – public markets and solid regional trade sales
- The outlook for South East Asian PE
- Conclusion
Chapter 07: Brazil – Latin can turn into profit
- Brazilian PE in figures
- Brazilian macroeconomics
- Transparency and corporate governance
- Competition
- Screening for deals
- Best sectors in Brazil
- Equity rules in the absence of debt
- Transaction deal multiples
- Potential returns
- Profitable exits
- Brazilian PE outlook
- Brazil and Latin America
- Conclusion
Chapter 08: South Africa – empowering the dark continent
- South African PE in figures
- South African macroeconomics
- Black economic empowerment – a symbiosis with PE
- Transparency, screening, due diligence and recent deals
- The growth funding wave
- South African entry multiples and valuations
- The best sectors, returns and exits in South Africa
- The outlook for South African PE
- South Africa’s PE role in the African continent
- Opportunities in the African continent
Chapter 09: The Middle East – fuelled by petrodollars and demographics
- Middle East macroeconomics
- The most promising markets and deal screening
- The best sectors in the Middle East
- Family businesses offer opportunities
- A cultural problem with buyouts
- Local and foreign competition
- Lack of transparency and corporate governance
- Valuations and transactions
- Returns for PE in the Middle East
- Exits in the Middle East
- The outlook for Middle East PE
Chapter 10: Eastern Europe – return to the future
- Introduction
- Central and Eastern Europe PE in figures
- Central and Eastern Europe – opportunities in the midst of trouble
- Best CEE sectors for PE investments
- New ventures and start-ups
- Competition
- Valuations, returns and exits
- The outlook for CEE PE
- Ukraine – From the brink to stabilisation
- Attractive sectors for deals
- Growth funding
- Deal competition
- Transparency and political stability
- Corrected valuations
- Ukrainian PE outlook
- South Eastern Europe and the Balkans
- Screening for the best sectors and deals
- Transparency problems
- Expansion funding
- Competition
- Valuations
- Returns
- Exits
- SEE PE outlook
- Turkey – promise on the European fringe
Chapter 11: Russia – the most volatile of the BRICs
- Introduction
- Russian PE in figures
- The Russian economy
- The most attractive sectors in Russia
- The dominance of growth funding
- Reduced deal competition
- Falls in deal entry multiples and valuations
- Trade sales dominate exits
- The outlook for PE in Russia
- Conclusion
List of tables and figures
Table 3.1: Fundraising for all EM funds / current fundraising for all EM funds (US$bn)
Table 3.2: Fundraising by region, 2006–09 (US$bn)
Table 3.3: Current fundraising by region, 2006–09 (US$bn)
Table 10.1: Type of investment in CEE vs. Europe, 2008 (€ 000)
Table 10.2: CEE investments by sector, 2008 (€ 000)
Figure 4.1: Comparison of capital raised by PE funds in Asia (including Mainland China), 2007–08 (US$m)
Figure 4.2: Comparison of total PE investment volume, 2007–08 (US$m)
Figure 4.3: Chinese enterprises’ domestic and overseas IPOs, Q1 2008–Q2 2009 (US$m)
Figure 8.1: Total funds under management, 2001–08 (Rbn)
Figure 8.2: Funds raised during the year, analysed by fund stage (Rbn)
Figure 8.3: Funds under management by BEE fund managers at year end (Rbn)
Figure 8.4: Composition of total funds under management at year end by the focus of the fund (Rbn)
Figure 10.1: Annual investment value in the CEE region, 2003–08 (€m)
Figure 10.2: Annual investments in CEE (no bank leverage included), 2007–08 (€m)