By Patrick Couris
Earlier this summer, SS&C was a proud technology sponsor at the SuperReturn Emerging Markets private equity conference. The annual conference provided in-depth market analysis and debate, high quality panels and content, and ample networking opportunities. Amongst an intimate group of 300 private equity decision makers, there were general partners (GPs), 130 limited partners (LPs) and several key influencers offering perspectives and representation from all emerging markets.
Kamran Anwar, SS&C Managing Director, Private Equity, participated on the ‘Markets to Watch’ panel which focused on how GPs and LPs are preparing for newly opening markets in emerging countries. Moderated by Eric Maillebiau, Founder of CapEos, Kamran’s co-panellists included Stephan Breban, Head of Private Equity at Dean Wetton Advisory, Oleg Jelezko, Managing Partner at Da Vinci Capital, and Elvin Guri, General Partner at Empower Capital.
Kamran and panellists exchanged ideas on how several years of episodic volatility and emerging markets (EMs) underperformance is causing investors to question the long-term case for investing in them. Is the 2016 surge in EM’s returns a sign that the asset class is attractive once again? Or will it slide back to the disruptive pattern? The current stance is that now is a good time to invest in EMs, but to be conscience of current macro risks, and emphasize bottom-up analysis to avoid capital losses.
In regards to why now is a good time to invest in emerging assets, the panel shared the following key reasons:
- EM valuations are attractive relative to their credit fundamentals
- EM returns outperform both developed market private equity and emerging market listed stocks
- EMs diversification provides an attractive risk-return profile through a broad and growing opportunity set well beyond just Asia-focused funds
- EM risk is lower than commonly perceived and can be managed with sufficient resources and commitment
At the end of the conference, Kamran and Patrick Couris, London and Luxembourg based SS&C Alternative Investment Funds Business Development Director, hosted a traditional Dutch dinner at the Haesje Claes restaurant in the old town. The SS&C dinner brought together 21 old and new friends and key market contacts.
We hope to see you there next year!