Which Countries Will the Private Equity Funds Change Their Directions to?

Various political problems are emerging in different parts of the world. The issue of the Southern China Sea tensions between China and Vietnam is resurfacing. The Southern China Sea is a problem between China and Vietnam which dates back hundreds of years like the issue of Aegean Sea between Turkey and Greece. There is a problem between Russia and Ukraine about Crimea. Close combat between these two countries caused major complications for Private Equity investments. Unrest in these markets continues. Nationalist and autocratic movements are expected to start surfacing in India after the elections. There are serious issues to tackle there. On the other hand, there are some well-known problems in the Middle East which affects Turkey from time to time.

When we look at this picture, we can see that Turkey’s situation is a lot better when compared to other emerging markets. Turkey can be the country which might emerge to the top at this point. Part of the investments which will come to these regions might shift to Turkey.

U.S. mostly shook off the distress which was caused by the global financial crisis in 2008 and it started to regain its growth oriented market position. After the discovery of the shale gas and its production, the U.S. quickly reduced its foreign dependency and it has even become a gas exporter. The country made huge investments in technology and innovation and currently advancing in robotics technology. Also invention of the 3D printing will open many new innovative doors in the future. After all these developments, Private Equity Funds are looking back at the U.S. again.

Private Equity Funds started to show interest to Sub-Saharan Africa region as a highly virgin market for them.

In short, Private Equity Funds will target emerging markets with a decreasing pace and will become more selective in these markets. At this point Turkey could be the preferred option within the Emerging Markets. U.S. and Sub-Sharan Africa on the other hand, will be the markets where Private Equity Funds will head more towards.