Over the past year or so, we’ve all become familiar with a whole host of terms we knew nothing about at the start of 2020.“Lockdown”, “rate of transmission”, and “social distancing” all entered our collective vocabularies. At the same time, we had to get used to new ways of working and doing business.
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.
Amid the pandemic the global fashion industry could have lost ground. Yet in Q1 last year SPEAR invested more than $5m into e-tailer RunwaySale.
While the economy has taken a severe knock on all fronts both before and during the COVID-19 pandemic, there are still companies looking to expand and for which they will require a capital injection. For an SME looking to do this, particularly in Africa, a private equity (PE) fund may be the way to go, providing the company has what it needs firmly in place in order to convince possible funders.
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