Data & Intelligence

Expanding Institutional Investment into Emerging Markets via Currency Risk Mitigation

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The United States Agency for International Development (USAID) has identified and championed a pressing issue that is, at once, a major public policy imperative and a crucial concern for the international investment community: how to mobilize greater flows of private equity (PE) capital for private sector development in emerging markets (EMs) by reducing currency (FX) risk for institutional investors and fund managers?

Within the development finance community, mobilizing greater private capital for sustainable growth is the issue of our time. Bilateral international development priorities and global Sustainable Development Goals cannot be achieved though publicsector spending alone. The needs are too great and the dollars
too few.

Development actors must actively engage private-sector players to catalyze and leverage substantial resources to promote sustainable growth across the developing world. Unfortunately, FX risk – specifically, the fear that an investment return in an EM will be washed away when converted back to U.S. dollars or Euros, because the local currency loses its relative value over time – is keeping billions (perhaps trillions) of dollars on the sidelines that could otherwise be invested in EM businesses to create jobs, grow tax bases, and enhance social safety nets.

As a Founding Member Firm of EMPEA , I am proud of what the organization achieved. I look forward to playing an active role on the Board of Directors as we enter our next phase.

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

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

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