Long-Run Returns to Private Equity in Emerging Markets

This study provides the first comprehensive evidence on long-run private equity returns in emerging and frontier markets using data from all equity investments made by the International Finance Corporation across 130 countries over nearly six decades. The findings show that risk-adjusted returns are broadly comparable to the S&P 500, with higher returns associated with economic growth and lower returns as financial systems deepen and capital controls are relaxed, highlighting the role of financial frictions in global capital allocation.