Data & Intelligence

In Case You Missed It: EMPEA’s 2014 Global Limited Partners Survey

According to EMPEA’s 2014 Global Limited Partners Survey, which was released earlier this week, two-thirds of LPs view the risk profile of private equity in emerging markets as unchanged over the past year, suggesting that long-term investors remain relatively unfazed by recent volatility. Though 78% of respondents assess their EM PE portfolio performance as having met or exceeded expectations, LPs have adjusted their net return expectations downward for the second consecutive year. This also corresponds to more bullish expectations for PE funds for developed markets than in the 2012 and 2013 surveys. Nonetheless, the bulk of LPs continue to expect EM PE funds will deliver higher net returns than their developed markets counterparts, with 57% of investors anticipating net returns of 16% or greater from their EM PE portfolios.

Non-BRIC markets retain the top three spots as the most attractive markets for GP investment for the second year in a row. Latin America (ex. Brazil) regains the lead after it was displaced by Sub-Saharan Africa in the 2013 survey. Southeast Asia and Sub-Saharan Africa round out the top three.

To view a full copy of the report, please click here. EMPEA Members also have exclusive access to a recording of our recent webcast: LP Outlook for Emerging Markets: EMPEA’s 2014 LP Survey Results.

For additional analysis on LPs’ sentiment towards specific regions/markets, check out the dashboard below.

LP Outlook by Region/Market
EMPEA has served as a useful reference platform for CDPQ by helping to define the eligible universe of fund managers in growth markets. Membership provides background data and a...

Rashad Kaldany | Executive Vice-President and Growth Markets, CDPQ

The developed markets have no equivalent to the role EMPEA is playing as a convener and source of trusted information in the emerging markets.

David Rubenstein | Co-Founder and Managing Director, The Carlyle Group