The emerging markets private equity sector “is a slightly more realistic, slightly more mature industry,” David Wilton, chief investment officer and manager of global private equity funds for International Finance Corp., told Pensions & Investments on Tuesday during a two-day global private equity conference in Washington sponsored by IFC and Emerging Markets Private Equity Association.
“The number of managers with a track record is increasing,” Mr. Wilton said in the interview.
Mr. Wilton said that as emerging markets private equity fund managers mature, they are focusing beyond top-line revenue growth to also look at efficiency, and mergers and acquisitions. “It has been a trend the last four or five years, but it's really much more noticeable now,” he said. “This year there is a slightly more grounded discussion.”
Mr. Wilton also noted that “limited partners are taking an increasingly sophisticated view of what actually drives value. It's not such a cyclical outlook.” As investors shift “from in-and-out to a permanent allocation, people will gradually figure out how they want to get in. Unless you make it part of your long-term strategy, you are going to be late to the market.”