The asset class diversifies their portfolios, provides protection against downside risk and, additionally, means they don’t have to worry about exchange rate risk. Local institutional investors should recognise that their long-term liabilities are particularly well suited to PE. Yet only a small proportion of this capital is local, with the majority coming from development finance institutions and international pension funds. However, local institutional investors should recognise that their long-term liabilities are particularly well suited to PE. Moreover, by deepening their ties to local PE firms, institutional investors can potentially open up co-investment opportunities.

Source: Daily Nation March 28, 2019 18:56 UTC