The Power of Private Equity: Catalysing Economic Growth in Underserved Nations
By Candice Czeremuszkin
In the modern era of global investment, private equity (PE) is increasingly recognised not only as a vehicle for financial returns but also as a catalyst for structural economic transformation. Long established as a force within developed markets, the sector’s potential to drive inclusive, sustainable growth in underserved nations — particularly across Africa, South America and parts of Asia — is now coming into sharper focus.
Private Equity as a Long-Term Partner in Development
Private equity does far more than inject capital. It brings a blend of strategic insight, operational rigour and long-term thinking that can fundamentally alter a company’s trajectory. In developing economies, where businesses often face limited access to finance, infrastructure and management expertise, this partnership model can be the difference between stagnation and scale.
Unlike public market investors, PE firms typically hold assets for five to ten years, giving them both the incentive and the capacity to nurture growth. That patience aligns well with the realities of building sustainable businesses in emerging markets, where success often depends on navigating regulatory uncertainty, addressing skills gaps and developing local supply chains.
Moore’s global private equity team, led by Candice Czeremuszkin, has observed that investors increasingly recognise the dual opportunity these regions represent — the potential for attractive returns, paired with tangible social and economic impact.
“There’s growing appetite from both institutional investors and family offices to find deals that create measurable development outcomes,” says Czeremuszkin. “That shift has transformed how funds approach due diligence, governance and even post-acquisition strategy.”
The Opportunity Landscape
Infrastructure and energy
Infrastructure remains the backbone of any developing economy, and yet many countries face chronic underinvestment. From roads and ports to renewable energy grids, the opportunities for private capital are vast. In Sub-Saharan Africa, for example, less than half the population has access to electricity. PE-backed firms are increasingly stepping into the gap — financing solar microgrids, clean power storage, and next-generation logistics platforms that enable regional trade.
Such investments are not merely philanthropic. Reliable power and efficient transport systems reduce business costs, increase productivity, and open up entirely new markets. In Moore’s experience, infrastructure-focused funds that combine financial discipline with strong local partnerships are often the ones achieving both scale and resilience.
Agriculture and AgriTech
Agriculture continues to underpin livelihoods across much of the developing world, yet inefficiencies persist across production and distribution. Private equity is now fuelling innovation through AgriTech — from precision farming tools to digital supply chains that connect farmers directly with international buyers.
In Latin America, PE capital has supported technology-led cooperatives that help smallholders secure better pricing and access to sustainable certification schemes. These models do more than raise yields; they embed transparency and traceability into food systems, aligning local growth with global ESG standards.
Czeremuszkin notes that agricultural technology is one of the fastest-growing areas of private investment within Moore’s client base.
“We’re seeing funds focus on scalability — building platforms that can replicate across borders rather than isolated projects. It’s about solving structural inefficiencies, not just injecting cash.”
Financial inclusion and FinTech
Perhaps no sector demonstrates the democratising power of private equity more vividly than financial technology. With billions of people globally still unbanked, mobile payments and micro-lending platforms are rewriting the rules of access to finance.
Across Africa and South Asia, PE-backed FinTech start-ups are enabling customers to build credit histories, access insurance, and make digital payments securely for the first time. This is not just a social good; it is the foundation for new consumer markets and thriving small businesses.
The next generation of FinTech success stories may emerge not from Silicon Valley, but from Lagos, Nairobi or Dhaka — cities where innovation meets pressing local need. Moore’s sector specialists have seen strong deal flow in these regions, driven by investors seeking diversification and by governments creating innovation-friendly regulatory frameworks.
The global convergence of trends
The growing momentum behind private equity in underserved nations is not accidental. Several macroeconomic and structural trends are converging to make these markets increasingly attractive.
Demographics and urbanisation
Africa’s population is expected to reach 2.5 billion by 2050, with a rapidly expanding middle class and urban workforce. This demographic surge translates into escalating demand for housing, education, healthcare and digital services — all sectors where private equity can provide the scale and sophistication to meet emerging needs.
Digitisation and leapfrogging
Developing countries often bypass the legacy systems that constrain mature economies. Mobile networks and cloud-based infrastructure allow them to ‘leapfrog’ traditional stages of development. For PE investors, this opens a frontier for technology-driven growth, particularly in consumer services, logistics and e-commerce.
Moore has seen first-hand how digital adoption drives value creation. In one recent engagement, the firm supported a fund expanding a cloud-based healthcare platform into secondary cities in Southeast Asia. The project delivered not only strong returns but also measurable community outcomes — a case study in the intersection of profit and purpose.
ESG integration and impact investing
Environmental, Social and Governance (ESG) factors have moved from the margins to the mainstream of private capital. Increasingly, investors demand proof that returns are being generated responsibly. In frontier markets, this alignment of profit with purpose has become a key differentiator.
Impact-focused funds are deploying blended finance — combining private, public and philanthropic capital — to achieve outcomes that would be impossible through commercial funding alone. For PE firms, integrating ESG principles from the outset is no longer optional; it’s essential for long-term credibility and access to global capital pools.
Moore’s global network has noted a rise in investor mandates explicitly linking carried interest to sustainability outcomes, reflecting the industry’s shift towards measurable impact.
Navigating the risks
Despite its promise, investing in emerging markets presents real challenges. Political instability, foreign exchange volatility and governance issues can all threaten returns. Yet, as experienced firms know, these risks can be managed with the right structures and local insight.
Successful investors are increasingly embedding themselves in the regions where they operate. They build relationships with local entrepreneurs, regulators and community stakeholders — a strategy that provides invaluable context and early warning against potential pitfalls.
Currency risk, too, can be mitigated through careful hedging and by structuring revenues in stable foreign currencies where possible. Likewise, partnerships with multilateral institutions and development finance bodies can provide political risk insurance and enhance credibility with local governments.
Czeremuszkin observes that the most effective funds are those that treat local partnerships as strategic, not transactional.
“We often see the difference in portfolio performance between firms that truly understand the operating environment and those that try to impose a Western model wholesale. The former tend to outperform, both financially and socially.”
The role of policy and regulation
Government support remains a crucial enabler of private investment. Predictable legal frameworks, transparent procurement processes, and efficient capital markets are all essential for sustained investor confidence.
Some countries are taking significant steps in this direction. Kenya’s public–private partnership framework, for example, has unlocked billions in infrastructure investment, while Brazil’s updated insolvency laws have improved exit visibility for investors. These reforms matter — they turn theoretical opportunity into investable reality.
Moore’s advisory teams often work alongside regulators and policymakers to translate complex international standards into locally practical solutions. That collaborative model strengthens ecosystems from within, ensuring that capital inflows are matched by institutional resilience.
Looking ahead: Private Equity as a catalyst for inclusive growth
To unlock the full potential of private equity in underserved nations, the ecosystem must evolve on several fronts. Limited Partners (LPs) need to broaden their mandates to include emerging markets as a core allocation rather than a peripheral ‘impact’ category. Local fund managers require greater access to global networks, training, and governance support. And regulators must strike the balance between investor protection and development facilitation.
The next decade will likely see deeper integration between global and regional funds, more blended finance models, and greater use of data analytics to measure non-financial outcomes. If harnessed effectively, private equity could become one of the defining forces of sustainable development in the 21st century.
As Moore’s global team continues to advise investors across multiple jurisdictions, a consistent theme emerges: the future of private equity will be built as much in Nairobi, São Paulo and Jakarta as in London or New York. Those willing to engage early — with patience, cultural awareness and genuine partnership — will help shape not only the growth trajectories of their portfolios, but of entire economies.
From capital to catalyst
Private equity’s greatest strength lies in its capacity to convert capital into capability. By investing in sectors that underpin everyday life — power, food, finance, education and health — the industry can help redefine the economic narrative of developing nations.
The success stories of tomorrow will not be confined to the boardrooms of established financial centres, but will emerge from local founders and communities who partner with investors to build resilient, scalable businesses.
In this sense, private equity is far more than a source of funding. In underserved nations, it represents the convergence of ambition, innovation and impact — a catalyst for change that is as transformative for investors as it is for the societies they invest in.
Candice Czeremuszkin
Global Private Equity Lead
Moore Global
Managing Partner
Moore in the Cayman Islands
Moore Global is a leading accounting, advisory and consulting network with over 500 offices across more than 100 countries. The network supports clients in navigating complex financial and operational challenges, with specialist expertise spanning audit, tax, corporate finance, and private equity advisory. Through its collaborative approach and deep sector knowledge, Moore helps businesses and investors unlock growth opportunities across both established and emerging markets.
