When you remove China, Only 4% of the $410 Trillion of Global Private Assets is Allocated to Emerging Markets.

Authored By Tshepo Magagane

Working in the bespoke, bilateral world – I can tell you how much an increased allocation to EMs will transform these countries!

Yesterday, I posted about China – there are still some things unacceptable BUT I can see the impact that their investments in airports, roads, bridges, buildings are having across Africa!

Spot, we are working on an IPO of an industrial company that was started just over a decade ago. It is producing USD100m in EBIT, produces and sells locally, and is an industrial company.

The excuse that:
1. There are no public markets – KKR, Blackstone, et al. have over 30 strategies that focus on private solutions each; and
2. Risk – the WB Group offers coverage for things such as confiscation disturbance – you are talking about 100bps pricing.

It is the individuals sitting in these organisations that need a paradigm shift to view EMs as opps!

The level of difficulty that we are encountering raising funds for Upstream (which the Transition cannot happen without) in Africa is mind-blowing – spot you have AuM of USD17-20bn in Specialist Mining Funds – for the avoidance of doubt, not near enough – Global Copper needs are over USD200bn…

… < 5% focuses on Africa (Africa spot produces 30% minerals)