Investing in Emerging Markets

As CEO of IPoint Capital Partners, a company that provides private equity services and asset management, Hilt Tatum IV uses his extensive financial expertise to make sound investment decisions. Among Hilt Tatum IV’s areas of focus is pursing investment opportunities in emerging markets.

Developed countries are not those driving the worldwide economy; developing nations are. These countries, which are industrializing quickly, provide many opportunities for a smart investor to earn strong returns. Currently, the emerging markets that are most attractive to investors around the world are in Latin America, as well as in parts of Africa, the Middle East, and Asia.

Though large profits are possible in these markets, investors need to be aware of special risks of investing in these regions. Typically, emerging markets have less regulation than established markets, as well as lower liquidity. There is also increased risk of inflation and political instability. Investing in emerging markets can be a great move, but it requires a sound strategy.

What Do Private Equity Firms Do?

As the CEO of iPoint Capital Partners, Hilt Tatum IV oversees venture capital and private equity investments by the company. Over the course of his career, Hilt Tatum IV has started more than 20 businesses and helped his company establish financial footholds on four continents.

Institutions and high-net-worth individuals often turn to private equity firms to help them manage their money and earn good returns. After raising funds from multiple parties, private equity firms invest in companies whose shares are traded privately, or they buy out publicly traded companies and take them private.

Each private equity firm has two major tasks: conducting deals and overseeing a portfolio of companies. Firms often cultivate relationships with other players in the financial industry, like investment banks and merger-and-acquisitions attorneys, who help them identify potential deals. Once they have invested in a company, the firms tend to take an active role in helping them succeed. Private equity firms may introduce new best practices or business systems to help their portfolio companies improve their performance and realize their full potential.

Private Equity Industry Expansion Leads to Higher Salaries

Panamanian entrepreneur Hilt Tatum IV is the president of iPoint Capital Partners, a venture capital and wealth management business he cofounded in 2006. Consulting services provided by Hilt Tatum IV and his company focus on private equity, real estate developments, asset management, and tax planning.

The private equity industry has enjoyed significant expansion over the past few years, according to Collar Capital’s Michael Schad, an investor in the secondary private equity market. With industry expansion comes increased private equity investment and co-investment in asset class, as well as higher wages for employees working within the sector.

Limited partnership employees are being recruited from other limited partnerships as well as alternative asset management firms, investment banks, and private equity firms. Klaus Ruhne of ATP Private Equity Partners predicts that the increase in limited partnership remuneration should result in a more sensible and consistent limited partnership organization as well as a more intelligent deployment of capital overall.