Question

10. Compare and contrast government policies for private equity in Argentina and Brazil.

11. Why have investors been reluctant to make VC investments in developing nations?

12. What are some of the risks associated with private equity investment in developing nations that are not often seen in developed nations?

13. What are the challenges of pricing deals in developing nations?

1. What are the dangers of taking private equity returns information at face value?

Answer 1

10.

Most private equity funds operating in Argentina and Brazil typically obtain their funding from foreign investors, including a broad variety of foreign institutional investors, pension funds, banks, hedge funds, multilateral institutions and individuals. Some private equity funds incorporated abroad but managed by Argentine managers or brazil manager obtain funding from local family offices, private individuals and some investment companies. Local banks, insurance companies and government agencies do not normally invest in private equity funds and there are currently no regulations to promote or provide incentives for this Private equity is not strictly regulated in Argentina or Brazil and lacks a specific regulatory framework. Activities of private equity funds are still governed by general rules governing companies and mergers and acquisitions. No specific investment vehicles or other structures are in place to incentivise or facilitate private equity investments.

11. Vc are the more of the private in nature then an well regulatory mode of finance.

There is an increased global or country awareness that a modern economy cannot reach its full potential without nurturing the innovation of its entrepreneurs, and that realization enhances the prospects for venture capital. Venture capitalists provide equity or other types of financing for small- and medium-size (and not for large ) enterprises that have growth potential and are not quoted on stock markets. They combine access to cash not available elsewhere with active management support. Their main objective is long-term capital gains to justify their financial risks.

Over all then are also of risky nature as being based on the private regulatory.

12. Private equity is most of the nature for the SME enterprises as being in the short term and in short amount in nature.

it is also the one of the largest source of finance for the SME enterprises.

The past several years have seen a boom in private equity activity in the developing world. This has been fueled largely by institutional investors based in the many countries. The reasons for this growth are several. Among them has been the recent rapid growth of many developing nations and the relaxation of curbs on foreign investments in many of these nations.

While in case of the developed nations like US the private equity is on the verge or reduction of the private equity.

13.challenges of pricing deals in developing nations because of the following reasons.

1. Taxes

2. Transfer prising.

3. Cost of labour and the imported goods.

4. Compitition in the market.

5. Governtment regulations and many.