Global limited partners including pension funds are set to increase commitments to emerging market private equity over the coming 24 months, according to a survey by the Emerging Markets Private Equity Association (EMPEA).
EMPEA said three-quarters of the LPs that responded to its survey were planning to increase their exposure to emerging markets, while only a quarter were looking to expand investments in developed markets.
According to EMPEA's survey, more than half of LPs expect emerging markets to account for 16 per cent or more of their total private equity allocation over the next two years compared with 2004, when 61 per cent of LPs had no allocation directed towards emerging market private equity.
Sarah Alexander, chief executive at EMPEA, said: "This year's LP survey responses indicate that investors are continuing to shift capital from developed to developing countries in search of returns, which is consistent with EMPEA's market data, and we expect this shift to continue for the foreseeable future".
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