Regional and Country-Specific Considerations

In the evaluation of private equity funds, successful investors dedicate significant time and resources to assessing regional and country-specific considerations. These factors include:

The maturity of the area’s private equity market. In those countries or regions where there may be tremendous potential, but the local private equity management talent pool is still developing, such as India, Kensington intends to continue to monitor opportunities, but would invest only when the depth of proven fund management talent provides acceptable risk/reward characteristics.
The depth of local management talent. In private equity investing, selection of excellent management teams is one of the most important drivers of success. In regions that have insufficient proven management, the opportunities to invest may be exciting, but the ability to execute a business strategy may be lacking, so that the overall risk may be unacceptable.
Receptiveness of the region’s business owners to private equity investment, as well as the availability of the managerial talent, entrepreneurship, and financial services infrastructure necessary to facilitate the private equity investment process.
Fundamental economic attractiveness of the region, sub-region or country as evidenced by private sector growth, political stability, foreign currency regimes and unfettered capital flows.
Degree of government intervention, regulation, and support for foreign investment in the private sector, which is a very important consideration given that private equity is a long term form of investment.

Kensington monitors prevailing market conditions with the goal of maximizing returns for investors at an appropriate level of risk.

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