Impacts of COVID-19 Crisis on Private Equity Funds in Emerging Markets
The role traditionally played by Private Equity Fund (PE Fund) investments in supporting private sector development in Emerging Markets (EMs) is being challenged by the COVID-19 pandemic. This note assesses how PE Funds in EMs may evolve as a resul...
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| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/618111614577934482/Impacts-of-COVID-19-Crisis-on-Private-Equity-Funds-in-Emerging-Markets http://hdl.handle.net/10986/35232 |
| Summary: | The role traditionally played by Private
Equity Fund (PE Fund) investments in supporting private
sector development in Emerging Markets (EMs) is being
challenged by the COVID-19 pandemic. This note assesses how
PE Funds in EMs may evolve as a result of the COVID-19
crisis, focusing on the Growth Equity and Venture Capital
(VC) asset classes. Growth Equity funds, which focus on
accelerating investees’ growth through operational
enhancements, account for a significant share of PE Fund
investments in several developing regions, while VC funds
are a fast-growing vehicle in certain EMs and present
specific opportunities related to technology and
digitization in the context of the COVID-19 crisis. This
note also discusses how selected ‘megatrends’ may impact
these two asset classes in the medium term, along with
opportunities for the industry and for enhanced DFI support.
The intended audience for this note is international
development practitioners, private equity professionals in
emerging markets, and capital market analysts. |
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