Some of the features of the private equity industry (hereinafter, “PE”) may produce the fostering of the sustainable development and constitute a good source of risk capital for SMEs in the developing countries.Indeed, in some cases the private equity industry can improve the environmental and social benefits and a financial return. The first feature favourable for developing economies is the long term vision of PE (usually around 5 year projects) in particular due to the stable environment for investments they are able to create. Moreover, usually PE team-boards are experienced and can create an additional value to the emerging company. Moreover, the PE is able to fill the gap for enterprisers who are too big to receive financial help from micro-enterprisers institutions and not big enough for bank finance. Last but not least, PE can be the right tool to introduce environmental, social and governance (ESG) management issues and remedies in the developing economies. In conclusion, the lack of financial resources in the private sector of developing countries can be solved by the vital and flexible financing model PE is able to provide. As a consequence, the bad reputation and the limits of this financial system as seen in the Western economy could be used as a development tool in emerging economies. The gLAWcal Team POREEN project Friday, 12 November 2014 (Source: The Broker)

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