Private equity and venture capital in emerging markets : a case study of Egypt and the MENA region

Private equity and venture capital investments in emerging markets grew significantly over the past five years (2003-2008), both in absolute and relative terms. In this study, we examine the industry's role in emerging markets, in terms of key actors, business processes, and impact on portfolio companies. We use a case study of private equity and venture capital in Egypt, and the Middle East and North Africa region. We focus on two key questions: (i) Why did private equity activities grow so much and so fast in Egypt?; (ii) What is the impact of private equity firms on their portfolio companies? And what are the broader economic development implications for the country? In addition to a number of global and macroeconomic trends that created a positive environment for private equity investments, we identify two key factors behind the industry's success in Egypt: first, the industry is dominated by local firms that rely on a mix of local knowledge and expatriate expertise, and have developed key competencies that provided them with a strong competitive advantage and enabled their growth. Second, these firms, while adopting global best practices in the industry, have adapted their business model and practices to the local market needs. In terms of their impact, we found that in most transactions, private equity firms acted as a catalyst for initiating, consolidating, professionalizing, growing and globalizing their portfolio companies, and in doing so, they increased their competitiveness and expanded their operations in regional and global markets.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Urban Studies and Planning.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2009

Author dc:creator

• Ismail, Ayman (Ayman Adel), 1973-

Advisor dc:contributor.advisor

• Alice H. Amsden.

• Urban Studies and Planning.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/55105

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/55105