Private equity in developing nations

Information about private transactions is often limited; hence, analysing their developments in the emerging markets becomes more difficult. The paper tries to establish a threefold relationship. It examines the importance of emerging markets in the global context within the realm of the BRIC economies, the role of capital market in the overall development of an economy and the relevance of private equity (PE) in boosting a country's capital market. It examines the various reasons for the PE market's explosive growth over the past 15 years in a phased manner and highlights the main characteristics of that growth. The paper aims to understand in a comprehensive manner the importance of PE investments in boosting the size of a nation's capital market and its overall impact in the context of developing nations, with an added focus on India. The paper draws the data primarily from trade journals.