The Routledge Companion to Management Buyouts

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PRIVATE EQUITY IN EMERGING ECONOMIES

Which markets are sufficiently mature? Should investors wait or invest immediately?

Alexander Groh

Introduction

There is a major shift in the private equity (PE) landscape from “traditional” and mature markets towards emerging regions. Emerging countries attract investors by high economic growth opportunities. These growth opportunities stem from the economic catch up potential combined with the large populations that many emerging countries have (Hoskisson et al., 2000). Nevertheless, growth opportunities are not the only factor that renders countries attractive to investors. The existence of a prospering PE market infrastructure and investment environment requires many socio-economic and institutional ...