Private Equity by R Charvel
0DQXVFULSW &RPPRQ/LQNV&OLFN+HUH7R'RZQORDG
The road map for private equity, venture capital and hedge funds in Mexico.
Alternative assets as an accelerator of credit to firms in emerging markets
Roberto Charvel Managing Partner at Vander Capital Partners and Professor at IPADE
roberto.charvel@vandercp.com +(52155) 5408.0598 Campos Eliseos 405 Col. Polanco 11560 Mexico DF, Mexico
Do well functioning stock markets and banks promote long-run economic growth? This is the way that Levine and Servos [1998] start one of their most influential papers. This question had been asked long before by Bagehot [1873], Schumpeter [1912] and many others through the XX century that studied the relationship between financial markets and economic growth. These heavyweight economists proved that stock market liquidity and banking development are positively correlated with current and future rates of economic growth, capital accumulation, and productivity growth.
Building on the previous body of literature, some authors have focused their research on the impact of the legal family on the development of financial markets (see La Porta et al). This authors review several variables (including but not limited to protection of property rights, minority rights, efficiency of court houses, corruption, enforceability of contracts). It seems that this literature known as Law and Finance, places the government as a central piece in the development of the financial markets.
Another school of thought focuses their interest in the way financial institutions are managed. For example, in 2005 Haber and Musacchio published an article comparing the performance of foreign and domestic banks in an emerging market. Surprisingly the nationality of the bank had an impact on the activity and performance of banks.
This article explores the importance of developing the alternative assets industry in emerging markets where the financial system is underdeveloped or is not functioning
The road map for private equity, venture capital and hedge funds in Mexico.
Alternative assets as an accelerator of credit to firms in emerging markets
Roberto Charvel Managing Partner at Vander Capital Partners and Professor at IPADE
roberto.charvel@vandercp.com +(52155) 5408.0598 Campos Eliseos 405 Col. Polanco 11560 Mexico DF, Mexico
Do well functioning stock markets and banks promote long-run economic growth? This is the way that Levine and Servos [1998] start one of their most influential papers. This question had been asked long before by Bagehot [1873], Schumpeter [1912] and many others through the XX century that studied the relationship between financial markets and economic growth. These heavyweight economists proved that stock market liquidity and banking development are positively correlated with current and future rates of economic growth, capital accumulation, and productivity growth.
Building on the previous body of literature, some authors have focused their research on the impact of the legal family on the development of financial markets (see La Porta et al). This authors review several variables (including but not limited to protection of property rights, minority rights, efficiency of court houses, corruption, enforceability of contracts). It seems that this literature known as Law and Finance, places the government as a central piece in the development of the financial markets.
Another school of thought focuses their interest in the way financial institutions are managed. For example, in 2005 Haber and Musacchio published an article comparing the performance of foreign and domestic banks in an emerging market. Surprisingly the nationality of the bank had an impact on the activity and performance of banks.
This article explores the importance of developing the alternative assets industry in emerging markets where the financial system is underdeveloped or is not functioning