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Long-run Returns to Impact Investing in Emerging Markets and Developing Economies

2 January 2020
Case Study
Publisher : NBER

16001

This paper provides the first comprehensive evidence on the long-run returns to private equity in emerging and frontier markets. Utilizing cash flow data from every equity investment made by the International Finance Corporation across 130 countries over 58 years, the study analyses the relationship between realised returns and macroeconomic conditions. It finds that returns are lower when economies relax capital controls and deepen their banking sectors, and improve with stronger real GDP growth and reductions in sovereign risk.

Author(s) :

Shawn Cole, Martin Melecky, Florian Mölders, Tristan Reed

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Key topics

Innovative Finance/ Blended Finance

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Financial Stewardship, Sustainability, & Accountability

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