What is the ideal investor’s group composition in emerging markets?

by a searcher from The University of Chicago - Booth School of Business

5 years ago

For those searching or investing in emerging markets, like Brazil, what is the ideal balance between local investors with a deeper knowledge concerning the specifics of the market, versus American investors, who have more experience with the search fund model and a larger pool of capital?

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searcher from IESE Business School

To expand on Artur's question: I was recently having a chat with searchers from Spain and they mentioned that if they could go back and change anything it would be to better assess the "fit" of their investors. Manuel, besides having an understanding and experience in the market, what other criteria would you take into account while looking for the investors' profile?

5 years ago | like reply | 1 like

member

Artur, very interesting questions.. I think there is not an ideal balance, but my experience is that the “foreign” investor should have an understanding and experience in the market you intend to work. Emerging markets offer a lot of opportunities, but there are also additional risks and your investors should understand those well.

5 years ago | like reply | 2 likes

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