“To invest in the frontier, go with private equity”, argues Alexander Benard
Real Clear Markets has published a piece by Schulze Global COO Alexander Benard in which he argues that frontier markets are most suitably engaged through private equity (rather than public equity investments):
In frontier markets, the best companies are unlisted. Typically, they are family-owned businesses with successful operating records and a deep understanding of the local market. To reach the next level, however, they require both growth financing and a partner who can help them introduce modern management techniques, systems, and processes. Finding these businesses means spending significant time getting to know the local market; helping them grow typically entails hands-on participation in the company’s day-to-day operations, forming a close working relationship with the company’s management.
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