Standing at the precipice of a major shift in global investment, major U.S.-based private equity firms have recently made the leap into emerging and frontier markets, where deal sourcing and opportunities will be increasingly abundant in the coming years. The Carlyle Group leads the way with region-specific funds, but KKR and The Blackstone Group aren’t far behind, as the biggest players in PE begin to make the leap into Africa, Southeast Asia and Latin America.
The largest U.S.-based PE firms will increasingly be looking for opportunities in frontier markets in the coming years as investment opportunities dwindle in the United States and Europe continues to remain in constant crisis-mode. In fact, we’ve already begun to see this shift. Carlyle now completes more than 25% of its PE deals outside of North America and Europe, while KKR, Blackstone and TPG closed roughly 15% of their transactions in emerging markets in 2013, PitchBook data show.
“It is not for the faint of heart, and it is not easy to do deals there,” Carlyle Group co-founder David Rubenstein recently said about Africa.
To read on about the risks and rewards of investing in the emerging world and to see how five of the biggest U.S.-based PE firms are approaching the new frontier, click here.