Private Equity Investments in Emerging Markets, National Governance, and Geographic Distance: The Case of Latin America, 1996–2009
The high level of economic growth that emerging markets are experiencing lately — including Latin America — offers new opportunities for different types of investments. Private equity (PE) investments in emerging markets have risen from $3 billion in 2003 to almost $70 billion before the Great Recession of 2008–2009 (Emerging Markets Private Equity Association, 2010). In the case of Latin America, PE investments totalled more than $7 billion in 2010 (LAVCA, 2011). By private equity we mean “financing for early- and later-stage private companies from third-party investors seeking high returns based on both the risk profiles of the companies and the near-term illiquidity of these investments” (Leeds & Sunderland, 2003: 8). For instance, venture capital (VC) is a type of private equity focused on start-ups.
KeywordsForeign Direct Investment Geographic Distance Venture Capital Latin American Country Governance System
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