Managing for Value at the Global Environment Fund

Managing for Value at the Global Environment Fund

By
Michael Kennedy, Debra McCoy, William Meehan III, Paul Pfleiderer
2013|Case No.F285

The Global Environment Fund (GEF) is a private equity fund focused on investments in environmental and energy solutions in both developed and developing markets. The fund is currently examining the strategy of one of its portfolio companies–NEOgás, a Latin American natural gas supplier–which is considering entering the Mexican distribution market. The also case recounts two previous GEF investments in emerging markets, a South African forestry company and a Southeast Asian waste management business, as examples of successful management strategies for creating value in emerging markets.

Learning Objective
This case is designed to highlight the importance of managing for value for private equity funds operating in emerging and frontier markets. Because of underdeveloped capital markets, most developing market private equity funds are not able to leverage their portfolio companies to create returns, and instead must rely on managing their portfolio companies well in order to create efficiencies and grow their business lines. Students are encouraged to discuss the pros and cons of the specific case of NEOgás and its possible entry into the Mexican market.
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