Resources

The report presents findings from interviews with 18 major UK pension schemes and insurers, revealing that whilst all investor categories allocate 5-10% to EMDE public equities and debt, private market exposure sits below 1% of portfolios with no immediate plans for material increase. 

The report identifies a clear appetite among asset owners to explore EMDE private markets – including infrastructure, private credit, and renewable energy – contingent on enhanced market infrastructure, clearer implementation pathways, and policy signals positioning EMDE investment as complementary to domestic priorities rather than competing objectives.  

Investors emphasised that capital allocation decisions must remain anchored in fiduciary duty and competitive risk-adjusted returns, whilst acknowledging that failed global climate transitions would expose all portfolios to systemic risk.  

Key barriers include fragmented regulatory frameworks across jurisdictions, limited internal expertise for due diligence, currency hedging costs, and a structural bias toward familiar developed markets despite recognition that the investment opportunity set in EMDEs is substantial.