Private equity groups are taking big legal and financial risks as they invest more in emerging markets to escape the US and European credit crunch, buy-out executives and lawyers warn. Private equity investment in the Bric countries – Brazil, Russia, India and China – reached almost $17bn in the year to June, up about 80% on the previous year, according to Dealogic. At the same time, expropriation of foreign-owned assets is on the rise, warned Peter O’Driscoll, a lawyer at Orrick in London. Among cases illustrating the risks for foreign investors in countries such as Russia is BP’s tussle over its TNK-BP joint venture.

This entry was posted by Gwen Robinson on Thursday, August 21st, 2008 at 5:15 and is filed under M&A, Private equity. Edit this entry.