Data & Intelligence

Governance in Emerging Market Private Capital: A Practical Resource for Investors and Fund Managers


By necessity, this document provides a high-level overview of the key ingredients of good governance. It does not go into great detail on the individual components; rather, it is meant to be a resource to assist practitioners in thinking through this vital topic. As appendices, we have included a master checklist to help you think through key good governance considerations, as well as a repository of resources to which you may refer to get further details on specific topics.

The fundamental takeaway is that the governance of a portfolio company, fund management firm or fund is not one-size-fits-all. Each country is different—with its own regulations and governance standards—each sector is different, and each firm is different. Therefore, good governance requires thoughtful consideration and tailoring of policies, processes, and procedures, and the cultivation of an ethical culture.

Why Good Governance Matters

Good governance is core to private equity’s value proposition in emerging markets—and it always has been. As active investors, PE firms can play a material role in an organization’s
performance, in terms of both supporting sustainable growth through value creation and mitigating risks. Good governance policies are also often required by the regulatory environment(s) in which a PE fund/investor operates— through these vary significantly across EM. This section briefly examines these three themes.

Call to Action

This report was conceived as a practical resource for investors and fund managers in EM PE. While it provides a comprehensive overview of key corporate governance and business integrity considerations across the three layers of the industry—PE fund managers, PE funds, and portfolio companies—it’s important to realize that good governance is not a static state. As numerous interviewees told us throughout the process of researching this report, there is always progression and every organization can pursue continuous improvement. Moreover, regulations are constantly in flux, creating new governance and compliance requirements.

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