Research, ideas, and leadership for a more secure, peaceful world

Past Event
Seminar

Financial Entrepreneurs? Private Equity in Emerging Markets: Egypt and MENA region

Open to the Public

Over the five year period between 2004 and 2008, private equity investments have grown exponentially in emerging countries: from $6 billion in 2004, to more than $66 billion in 2008. Based on a case study of Egypt and the Middle East & North Africa (MENA) region, we discuss three key questions, and their policy implications: (i) Why did private equity activities grow so much and so fast in emerging economies? (ii) How similar or different are their practices from private equity in developed countries? Why? and (iii) How do private equity firms impact their portfolio companies?

Date: Time: - Location: Littauer Building - Belfer Center Library, Room 369

About

Over the five year period between 2004 and 2008, private equity investments have grown exponentially in emerging countries - from $6 billion in 2004, to more than $66 billion in 2008. These funds were raised by more than 210 private equity funds and firms focusing on emerging markets. Private equity firms are becoming important actors in these countries: they act as a source of finance for new enterprises or existing ones; they act as owners and managers of portfolio companies; and they act as employers, both for management and labor. In our research, we focus on three key questions: (i) Why did private equity activities grow so much and so fast in emerging economies? (ii)  How do private equity firms conduct their business activities throughout the private equity investment cycle? How similar or different are they from private equity practices in developed countries? Why? and (iii) How do private equity companies impact their portfolio companies? We also discuss the related policy issues and implications. In base our analysis on a case study of Egypt and the Middle East & North Africa (MENA) region.