International Investments in Private Equity

Chapter 8. Cross-border fund commitments, due diligence, and the allocation matrix

Chapter Outline head

8.1. Cross-border fund-raising: empirical evidence160

8.2. The growing importance of emerging economies as suppliers of private equity capital164

8.3. Due diligence in cross-border commitments170

8.3.1. General due diligence principles170

8.3.2. Due diligence in nontraditional markets and real options173

8.4. The allocation matrix177

8.5. Summary and conclusions180

As domestic private equity industries have emerged in a rising number of countries and private equity funds have become increasingly less home biased, the scope for limited partners to diversify their portfolios internationally has expanded substantially. In this chapter, we look at ...