At private equity’s frontier

Myanmar’s nascent – but growing – private equity players face an uphill battle in convincing local businesses to accept foreign capital. Delta Capital Partners, the country’s largest private equity manager, hopes to find willing recipients among the market’s younger companies, which typically come with fewer legacy issues related to Myanmar’s chequered business history, managing partner Nick Powell tells Private Equity International as part of our upcoming emerging markets special report. The Yangon-headquartered firm will seek $100 million for its third fund – most of which is expected to come from DFIs – and is looking to write heftier cheques this time around. If the fundraising process is anything like its predecessor, Powell notes, the going could be a slog.

NAV loans the answer for EM managers?

Emerging markets GPs are particularly well-suited to making use of NAV lending facilities where hold periods tend to be longer and the secondaries market for LPs trading their stakes is less developed, write lawyers from Akin Gump in this guest piece. Some good news: pricing for such loans is likely to drop as the universe of lenders grows and their familiarity with the underlying assets increases.

Essentials