Nicolas Escallon & James Magor coverage in New Private Markets: Emerging markets benefit from an investor ‘risk flip’

Actis’ Nicolas Escallon and James Magor spoke with Michael Bowen of New Private Markets for an article analysing the growing reassessment of growth markets by institutional investors. Click here to read the full article.

Nicolás reinforced the structural case: growth markets require roughly two-thirds of global infrastructure build-out yet attract less than a third of allocated capital. As he puts it, these markets are often underserved, undersupplied and under-allocated – and it is precisely this situation that can create exciting infrastructure opportunities for investors like Actis.

James noted that the opportunity in growth markets means investors can aim to combine compelling returns with meaningful impact, which is key given how “even impact-seeking LPs want strong, risk-adjusted returns.” He also emphasised the common misperception about growth markets being riskier, arguing that the risks are not necessarily greater, but different, pointing to how the speed and scale of markets such as India or the Philippines can actually de-risk investments in infrastructure compared to those in developed markets.