The International Finance Corporation, the private sector arm of the World Bank Group, has invested in emerging market private equity funds since the late 1980s and in 2000 created a dedicated group to invest in private equity funds. IFC’s portfolio currently stands at around $3 billion committed to over 180 funds and IFC is a significant player in the emerging market funds space, having backed around 10% of the funds in the space. The portfolio is widely distributed across all regions including Africa, East Asia, South Asia, Eastern Europe, Latin America and the Middle East.

The Funds Department is IFC’s center of expertise for the selection and structuring of new funds, leveraging and sharing the experience gained from its portfolio and adapting best industry practices to the constraints of the different markets in which it operates.

IFC backs private equity funds in the emerging markets as funds, with their unique provision of both equity capital and expertise, have significant impact on company growth and job creation. The average rate of job creation within companies backed by IFC-supported funds since 2000 has been 22%, well in advance of regional rates of job growth of 2-3%.

IFC is a significant supporter of emerging managers. Since 2000 43% of funds backed by IFC have been 1st time funds (70% since 2007) and a further 56% have been second time funds. We have had good results from backing first time funds and, overall, returns on private equity fund investments since 2000 are in the top quartile of the Cambridge EM Benchmark.

More information on our experience investing in emerging market funds and what we look for in funds can be found in the ‘News and Presentations’ tab at the top left of the page.

IFC continues to support the private equity industry in emerging markets, working with fund managers who can add value and have a positive development impact on the economies in which they invest. In addition, IFC sponsored the creation of EMPEA (the Emerging Markets private equity Association), and holds an annual Global Private equity Conference, which is now the premier event for investors in the sector.