IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/27870.html
   My bibliography  Save this paper

Long-run Returns to Private Equity in Emerging Markets

Author

Listed:
  • Shawn Cole
  • Martin Melecky
  • Florian Mölders
  • Tristan Reed

Abstract

We provide the first evidence on the long-run returns to private equity in emerging and frontier markets using the cash flows from every equity investment made by the International Finance Corporation across 130 countries over 58 years. Risk-adjusted returns are comparable to the S&P 500, at least from 1961 until 2010. Returns improve with economic growth, but decline as banking systems deepen and countries relax capital controls. These results are consistent with the thesis that financial frictions have prevented the flow of capital from rich to poor countries, and that the persistence of impact investors’ performance may rely on identifying or creating new markets that lack access to capital.

Suggested Citation

  • Shawn Cole & Martin Melecky & Florian Mölders & Tristan Reed, 2020. "Long-run Returns to Private Equity in Emerging Markets," NBER Working Papers 27870, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27870
    Note: CF DEV
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w27870.pdf
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:27870. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.