Data & Intelligence

2015 Global Limited Partners Survey

Key findings from the 2015 LP Survey:

  • Over the next two years, 33% of LPs* plan to increase the percentage of their total PE allocation targeted at emerging markets (versus 41% in the 2014 survey), and 47% of LPs* anticipate increasing the dollar value of new commitments to EM PE funds (versus 54% in the 2014 survey).
  • LPs identify measuring performance and benchmarking results, followed by transparency, as posing the greatest concern in the management of their EM PE portfolios.
  • Latin America (ex. Brazil), Southeast Asia and Sub-Saharan Africa hold onto the top three spots in the ranking of most attractive emerging markets for GP investment, with Latin America (ex. Brazil) and Sub-Saharan Africa poised to see the largest influx of new capital from LPs over the next two years.
  • Among all sectors, the highest percentage of LPs express interest in building exposure to healthcare and consumer services/goods via private equity in emerging markets, whether through generalist or sector-specific funds.
  • EM PE portfolio performance continues to meet or exceed expectations for the majority of LPs (75%). Though return expectations for EM PE funds have cooled, LPs still expect 2014-vintage vehicles for emerging markets to outperform their developed markets counterparts.
  • Across global private equity markets, Emerging Asia funds are expected to net the highest returns. More than half of LPs expect 2014-vintage funds focused on Southeast Asia, China and India to net returns of 16% or higher.
  • LPs expect value creation to drive 60% of returns for EM PE funds, compared to 50% for developed markets PE funds. LPs anticipate leverage driving approximately 30% of returns for developed markets funds versus 10% for EM PE funds.
  • Limited partners view political risk as the main deterrent for investing in eight of the ten emerging markets/regions identified in the survey.
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