Top holdings Chevron Corp. Emerging market securities, on the other hand, cannot be valuated using the same type of mean- variance analysis. As we pointed out in Section 3, it can also make a big difference to scout deals in key sectors where growth is likely to hold up even as macro conditions deteriorate. Basic-resource stocks are up 35 percent, while the 40 percent rise in oil prices is also characteristic of this phase for the global economy. In this seemingly endless environment of economic stagnation, what will drive revenue and profit growth? Some observers also see LPs looming as competition in a crowded market for attractive deals. Here are a few suggestions.
Asia-Pacific Private Equity Report 2016
In practice, the presence of large, well-connected investors in the market allows an elite group of GPs to take on bigger deals than they would otherwise be able to do. That is well above expectations for similar vintages in the US and Europe. The best PE firms manage their way through volatility by sourcing well, understanding risk, adding value during holding periods and setting themselves up to exit opportunistically. Find out what you can do. In China, PE firms seldom operate with majority control.
The Risks Of Investing In Emerging Markets
Federal Reserve is ahead of the curve in tightening monetary policy. As stocks have risen, dividend yields have fallen. Fourth, a small allocation directly to commodities may make sense this year. Turning to the family office. As clouds gathered over traditional industries such as manufacturing and retail, for instance, investors poured into the red-hot Internet sector, which showed no signs of stalling. Types Books Infographics Newsletters Videos and multimedia. According to Goldman Sachs, these will be big global investments:
One prime example emerged in January , when KKR said it had formed a partnership with China Orient Asset Management and COS-Capital to focus on credit and distressed debt opportunities in China, with a key focus on the real estate sector. For example, a number of prime money market funds, which invest mostly in short-term corporate debt securities, offer yields of more than 1. Viewed through this lens, a variety of sectors produced fresh opportunities in Often this means coinvesting with one or a select group of GPs see Figure 3. However, the main reason for their convergence towards the developed economies is that there are a number of developed countries whose economic fundamentals are deteriorating at an even more rapid pace than those in the emerging markets are improving. Besides the political transition, there are many risks—from the environment and official corruption to external issues like territorial conflict—that keep us awake at night.