Data & Intelligence

2014 Global Limited Partners Survey

Key findings from the 2014 Global Limited Partners Survey include:

  • 41% of LPs* plan to increase the percentage of their total PE allocation targeted at emerging markets over the next two years, higher than the 32% reporting similar intentions in the 2013 survey.
  • 54% of LPs* expect to increase the dollar value of new commitments to EM PE funds over the next two years—a smaller percentage than in 2012 (75%) and in 2013 (60%). A bulk of LPs attribute the increase to their growing global PE portfolios, including the portion directed at emerging markets.
  • 67% of institutional investors view the risk profile of private equity in emerging markets as unchanged over the past year, suggesting that LPs remain relatively unfazed by recent volatility.
  • 78% of respondents assess their EM PE portfolio performance as having met or exceeded expectations for the asset class, compared with 22% who consider their EM PE portfolios as having underperformed.
  • 57% of LPs expect net returns of 16% or more from their EM PE portfolios versus 38% of LPs who expect similar results from their developed market counterparts. Compared to last year’s survey, this finding marks a downward adjustment for emerging markets and corresponds to more bullish expectations for developed markets.
  • China and Latin America (ex. Brazil) funds have the highest return expectations among LPs, with 61% and 56% of respondents, respectively, expecting net returns of 16% or higher for 2013-vintage vehicles.
  • 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 last year’s survey. Southeast Asia and Sub- Saharan Africa round out the top three.
  • Southeast Asia is poised to see the greatest influx of new investors over the next two years, while 32% of LPs already active in the region and 31% already active in Latin America (ex. Brazil), plan to expand their current commitments in those markets.
  • Political risk remains the primary deterrent for LPs to begin investing in certain emerging markets, including Russia/CIS, Turkey and the Middle East and North Africa (MENA). For Southeast Asia, Latin America (ex. Brazil) and Sub-Saharan Africa, LPs express concern over the limited number of established fund managers.
  • Growth capital fund strategies continue to remain a focus for investors, with 50% of LPs indicating plans to expand EM commitments to these vehicles over the next two years, followed by 36% of respondents expecting to increase commitments to buyout funds.

*Exludes development finance institutions and EM-focused funds of funds.

EMPEA represents the leading global investors in EM. I look forward to working alongside to drive much-needed capital for financing entrepreneurs and businesses worldwide.

Renuka Ramnath | Founder, Managing Director & Chief Executive Officer, Multiples Alternate Asset Management Private Limited

EMPEA plays an important and energetic role across the markets it represents, driving outreach and research initiatives, and promoting the role of private capital.

Brian Lim | Partner and Head of Asia and Emerging Markets, Pantheon Ventures

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 Co-Executive Chairman, The Carlyle Group

I’m honored to join fellow industry pioneers in the leadership of an unparalleled network, filled with first movers, shaping the future of industries and communities.

Dr. Andrew Kuper | Founder and CEO, LeapFrog Investments

EMPEA's market and industry intelligence opens doors to new sources of capital.  I look forward to the future success of EMPEA and its members.

Torbjorn Caesar | Senior Partner, Actis

While there are certainly challenges for the industry, the opportunities abound in our target markets and globally, making a global association like EMPEA more relevant than ever.

Drew Guff | Managing Director & Founding Partner, Siguler Guff & Company