Over the past few years, environmental, social, and governance (ESG)-led investing has grown exponentially. In fact, the value of ESG-driven assets almost doubled over four years, and more than tripled over eight years, to hit US$40.5 trillion in 2020.
In 2017 there was new hope for the economy of Zimbabwe with a change in leadership. Last year, the Zimbabwe dollar was once again introduced as the official currency, but according to some reports has already lost 98% of its value on the black market. The country is currently also experiencing political instability.
There’s no shortage of global challenges for investors currently, especially for those concerned with private equity (PE). PE and risk managers with their fingers on the pulse are turning to often overlooked opportunities in emerging markets. As Martin Soderberg discusses, while there are arguably higher levels of risk associated with such investments, the key is being able to identify good companies – and some of these may be found in bad economies.
Emerging markets will need to be vocal about where their value lies for Private Equity (PE) entities to consider them for investment. But both pre- and post-Covid-19 circumstances have and will again make for sustainable returns for informed investors, says Bryan Turner of SPEAR Capital.
The aim of every fastidious private equity (PE) firm is to single out potentially worthy and lucrative investments, before building value creation development plans that, once executed, will ultimately generate superior returns for investors. However, this may be regarded as a tall order in the current global economic climate, unless we as an industry start targeting some of the lesser known opportunities that are making themselves known in emerging markets.
An event of historic significance passed largely unnoticed in the world’s media recently, yet it’s significance is huge in terms of setting the tone for a new trend in Africa. This is a continent stereotyped by antiquated perceptions of a continent in conflict, or countries beset by corruption and political interference
Undoubtedly, emerging market investors face the prospect of ongoing challenges, many extrinsic to developed markets – and not least at this point in time. The World Economic Forum, in a recent survey, concluded that 38% of risk analysts fear economic collapse in developed markets, due to the blanket effects of Covid-19.
With startling figures emerging about the contraction of the UK economy as a result of the lockdown implemented to limit Covid-19 infections, many businesses will be facing the toughest times in many years. According to the Office for National Statistics, the economy shrank during April by as much as 20,4%, April being the month in which the tightest lockdown regulations applied.
Cape Town based e-commerce fashion retailer RunwaySale says it has received an investment of R100 million from international private equity firm, SPEAR Capital.