Research
Emerging Private Markets
Programs’ Objectives
Analyzing empirically the risk-return-impact profile of private market investments in Middle East, Africa, and Southern Asia (MEASA), and its implications from a global capital asset allocation perspective.
The program develops in 2 Flagship Projects:
- Development banks and the returns to PE in EM/LDC
- Risk, returns, impact in PE in EM/LDC
Flagship Project 1.
Development banks and the returns to PE in EM/LDC
Objective 1.1 – Data Collection
Build a Proprietary PE Database
- Pool in a single database transaction-specific
information about the investments made by
MDBs/DFIs in private equity funds as LPs in emerging
and developing economies - Compute metrics on the financial performance for
these funds and for a suitable control sample
Deliverable 1.1 – Database
1 Database
- The MDBs/DFIs Private Equity Database
Objective 1.2 – Risk Modeling
Analyse Risk and Return Profiles of PE Funds
- Analyze empirically the risk and return profile of
these funds - Test whether MDB/DFI participation as LP provides and effective screening mechanism, enabling them to achieve superior performance
- Analyse the implications from a global asset
allocation perspective
Deliverable 1.2 – Publications
1 Report, 2 Articles
- Report title: Scaling up Private Capital
Mobilization: the originate-to-share model - Peer-reviewed articles:
1. De-risking emerging private markets: the role of development banks.
2. Development as an asset class: a systematic approach to EM
allocation in institutional portfolios
Objective 1.3 – Investment Insights
Translating Insights into Investment Action
- Contribute in the development of “Originate-to-Share” opportunities in PE in emerging markets
- Develop optimization tools by expanding the investable universe available to institutional investors by including new EM/LDC
specialized vehicles.
Flagship Project 2.
Risk, returns, impact in PE in EM/LDC
Objective 2.1 – Data Collection
Build a database on impact-oriented PE funds
- Collect a representative sample of private equity funds and categorize them as impact-oriented by applying the IRIS+ thematic taxonomy
- Apply the Signature Impact Framework for an ex ante impact assessment of these funds
- Integrate in the database risk-adjusted financial indicators
Deliverable 2.1 – Database
1 Database
- The Impact PE Database
Objective 2.2 – Risk Modeling
Analyse Risk and Return Profiles of impact-oriented Funds
- Analyze empirically the risk and return profile of
these funds and identify statistical relations
between impact orientation, thematic exposure,
and financial returns
Deliverable 2.2 – Publications
1 Report, 1 Article
- Report title: Thematic Investing in Private
Markets: Aligning Sustainability Impact
with Financial Returns - Peer-reviewed publication. Profit and
purpose: an empirical examination of the
return–impact nexus in private markets
Objective 2.3 – Investment Insights
Translating Insights into Investment Action
- Contribute in understanding the trade-offs — if any — arising between conventional and sustainable investments in private
markets
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