Unlocking Potential: Why Family Offices Should Embrace Emerging Markets for Sustainable Growth

Rapid Growth – Emerging Markets can benefit from rapid growth and potentially high returns, which can beat their developed counterparts.

High Population Growth - EM tend to benefit from high population growth and technology developments while having decent valuations.

Emerging market countries experience positive macroeconomics and have  strong companies with low valuations and fast growth.

Diversification -  EM offer diversification as you won’t solely be exposed to one country or region, so you reduce the overall risk of your portfolio.

Family Office managing UHNWF assets have high liquidity which can  invest in EM and participate in  specific SPV structured for such opportunities. Family Offices can invest with smaller tickets in club deals should they not have enough resources for proper Due Diligence of the opportunity. With the addition of DFI, MBD, guarantees, the risk is minimized and the investment is  more secure.

Yet,  a paramount reason to invest in EM is to reduce the global equity gap and ensure solid markets and opportunities for all.  Investing in EM will  strengthen local markets and reduce the flow of reluctant refugees which will weaken extreme politicians in the developed markets whom are divisive and polarizing constituencies.  This may not be enough incentive for a financial advisor to mobilize capital to EM so we revert back to the positive economic variables and reduced risk factors as described above.