The frontier markets team seeks to capitalize on the rapidly growing private equity opportunities in Turkey, Middle East, Africa and Russia/former Soviet Union. We are particularly attracted to opportunities where we can leverage our on-the-ground presence across more than one focus region.
| Region / Country Focus |
 |
Investment Rationale |
| Turkey |
- Liberalized economy with young consumers
- Strong industrial base driven by high domestic demand and substantial trade with neighboring regions
- Entrepreneurial culture with significant management capabilities teams historically grow companies regionally as opposed to just nationally, as is the case in many other frontier countries
- EU accession and regional integration process driving corporate sector changes
|
| Middle East/North Africa |
- Gulf Cooperation Council countries and North Africa have 69% of the world’s oil and 48% of natural gas reserves [1] – opportunities across the value chain
- Rapidly growing base of 350 million consumers with similar purchasing habits; [2] cooperation among countries also facilitates company growth across the region
- Increasing economic liberalization, industrial development initiatives and focus on diverse sectors that support domestic spending
- Significant infrastructure spending plans
|
| Sub-Saharan Africa |
- Significant natural resources – oil and gas, copper, gold, platinum, among others
- Improved democracy and stability in most markets
- Growing pan-African economic and trade ties
- High GDP growth potential – African GDP is only 2.1% of the world’s GDP but represents 10% of world population [3]
|
| Russia/Former Soviet Union |
- Russia GDP growth consistently outperforming developed countries
- Highly educated Russian population relative to many emerging markets
- Government commitment to use oil and gas wealth to modernize and diversify the economy
- Large and growing middle class
| |
1. Source: U.S. Department of Energy. As of 31 December 2007.
2. Source: World Economic Outlook, 2007.
3. Source: World Economic Outlook, 2007.
