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eFront: Is Private Equity In Emerging Markets Worth The Risk?

Alternative investment tech firm eFront published new data today looking at emerging markets private equity and how it compares to developed market PE. Data from eFront shows that the pooled average performance of emerging market funds is lower than in developed markets, with returns of 1.46x and 1.55x respectively. However, as a result of emerging markets being heavily focused on venture and growth capital investments, which have a longer time to liquidity and report the value of their portfolio as the historical value, rather than fair market value, the performance of emerging market funds might be significantly understated. A like-for-like comparison between emerging and...