Private Equity Returns in Emerging Markets

Missankov, Ivan; Dyk, Riaan van; Biljon, Andrew Van; Hayes, Mark; Veen, Werner van der

doi:10.3905/jpe.2008.710904

Cited by 5 publications

(5 citation statements)

References 1 publication

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“…When investment returns in North America and Europe are considered, private equity investments outperform investments in public companies (Harris, Jenkinson & Kaplan 2016). Although a paper presented by Missankov et al (2008) is now dated, it is still a relevant point of reference. They suggest that the financial performance of private equity funds over 13 years, ending 2005, exceeded that of public investments by up to 18% per annum.…”

Section: Financial Performancementioning

confidence: 99%

Analysing the criteria of private equity investment in South Africa

Hamman

Nel

Oberholzer

2021

Journal of Economic and Financial Sciences

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Within the conceptual paradigm that the institutional environment may influence investment criteria, this study argues that South Africa has a unique socio-economic environment and matters such as black economic empowerment, corruption, redistribution of land and other related matters pose unique challenges to private equity investors. Research purpose:The purpose was to determine the critical criteria that present a challenge to private equity investment professionals when considering an investment in business ventures in South Africa.Motivation for the study: As far as can be established, similar research to identify and prioritise the investment criteria used by private equity investors has not been done or published in South Africa.Research approach/design and method: A literature review was conducted to develop qualitatively a 51-component questionnaire, which was quantitatively tested by a convenience sample of 44 registered private equity investment professionals in South Africa. Main findings:Descriptive statistical analysis revealed that the most important individual criteria component is the intention of co-shareholders. From a factor analysis, the most important factors are the internal and the external abilities of the fund manager to identify investment opportunities. Practical/managerial implications:The new prioritised investment decision-making criteria may aid potential target companies, wanting to attract funding from private equity investors, to organise themselves to become attractive investment opportunities. Contribution/value-add:A new prioritised list was developed to better understand how South African private equity investment professionals make investment decisions.

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Section: Financial Performancementioning

confidence: 99%

Analysing the criteria of private equity investment in South Africa

Hamman

Nel

Oberholzer

2021

Journal of Economic and Financial Sciences

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“…Overall, rates of return on both FDI and private equity investment in Africa are better than in other developing regions. Likewise, private equity investment outperformed listed equity by about 18% annually over a 13-year period in the RSA (Missankov et al [2008]). Falling returns in the more established markets of Western Europe and North America have enabled global fund managers to consider the African market, which is reporting impressive returns, often in excess of 20%.…”

Section: Political and Economic Reformsmentioning

confidence: 99%

“…In their empirical analysis of the investment performance of a sample of 11 private equity funds in the Republic of South Africa (RSA), for example, Missankov et al [2008] relied on data dating back to the 1990s. In their empirical analysis of the investment performance of a sample of 11 private equity funds in the Republic of South Africa (RSA), for example, Missankov et al [2008] relied on data dating back to the 1990s.…”

Section: Evolution Of Pe In Africa a Recent Phenomenon?mentioning

confidence: 99%

The Private Equity Market in Africa: Trends, Opportunities, Challenges, and Impact

Babarinde¹

2012

JPE

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“…We observe that many regions are not well represented. It was not possible to calculate an index for the Middle East, because of insufficient sample size; the whole Latin America and Caribbean region has only 47 funds (in contrast, our sample for estimating performance for Brazil only has 46 funds), and the Africa index consists of 43 funds (Missankov et al [2008] built a sample of 11 private equity funds over a 13-year period with cash f low information only for South Africa).…”

Section: Evolution Of Fundraising In Latin Americamentioning

confidence: 99%

“…Even if the Spectra-Insper database may be subject to some selection bias, the dataset does not contain a severe survivorship bias, and it seems to represent the Brazilian PE and VC fund universe well, with bad, average, and good performers. By comparison, Missankov et al [2008] build a sample of 11 PE funds over a 13-year period for South Africa, with cash f low information. Their sample contains only funds that have been operating for at least three years.…”

Section: Number Of Funds Raised By Organization Vs Vintage Of First mentioning

confidence: 99%