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GRANT THORNTON STUDY FINDS THE DEMAND FOR EQUITY INVESTMENT IN ARMENIA IN NEXT FIVE YEARS MAY RANGE FROM $7.5 TO $9 BILLION
YEREVAN, September 25. /ARKA/. A Grant Thornton study has found that
the demand for equity investment in Armenia in the next five years may
range from $7.5 to $9 billion. These numbers were announced by David
Manukian, a senior consultant from Grant Thornton Company in Armenia,
when presenting the study's findings at a conference on facilitating
access to capital for competitive businesses.
"Equity investment is not an alternative to traditional sources of
funding, but it is able to supplement them," he said. According to
him, the annual demand for equity investments in the Armenian market
is $1.5-$1.8 billion.
"The amount of available resources for investment in private equity,
according to our estimates, is $50 million, 95% of which is provided
by international financial institutions," he said, , adding that
according to Grant Thornton, the total capital and credit investments
of international financial institutions in Armenia in 2012 amounted
to $150 million.
Manukian pointed out pension funds, global equity funds, insurance
companies and local and international organizations as potential
sources of equity investment.
He unveiled also figures which were obtained as a result of creating
a model investment fund with a capital investment of $20 million and
a 10 year operation. According to him, under the baseline scenario,
50 % of the investment would be successfully implemented bringing
income, 20% would be returned without income and the remaining 30 %
will be unprofitable.
"As a result of the study we concluded that creation of investment
funds in Armenia will have a tangible effect on the economy and
contribute to the development of its capital market ", he concluded.
Grant Thornton, a member of Grant Thornton International, was founded
in Armenia in the early 90's. The company provides its customers with
a wide range of auditing, consulting services, as well as advice to
enterprises, commercial banks, financial institutions, government,
local and international organizations.
Among its clients are more than 20 banks, dozens of credit institutions
and insurance companies and foundations in Armenia, Georgia, Tajikistan
and Kyrgyzstan.
The conference on facilitating access to capital for competitive
business was organized by the U.S. Agency for International Development
with the support of Small Enterprise Assistance Fund.
-0--0 - - See more at:
http://arka.am/en/news/business/grant_thornton_study_finds_the_demand_for_equity_i nvestment_in_armenia_in_next_five_years_may_range_/#sthash.HjEIEtSq.dpuf
YEREVAN, September 25. /ARKA/. A Grant Thornton study has found that
the demand for equity investment in Armenia in the next five years may
range from $7.5 to $9 billion. These numbers were announced by David
Manukian, a senior consultant from Grant Thornton Company in Armenia,
when presenting the study's findings at a conference on facilitating
access to capital for competitive businesses.
"Equity investment is not an alternative to traditional sources of
funding, but it is able to supplement them," he said. According to
him, the annual demand for equity investments in the Armenian market
is $1.5-$1.8 billion.
"The amount of available resources for investment in private equity,
according to our estimates, is $50 million, 95% of which is provided
by international financial institutions," he said, , adding that
according to Grant Thornton, the total capital and credit investments
of international financial institutions in Armenia in 2012 amounted
to $150 million.
Manukian pointed out pension funds, global equity funds, insurance
companies and local and international organizations as potential
sources of equity investment.
He unveiled also figures which were obtained as a result of creating
a model investment fund with a capital investment of $20 million and
a 10 year operation. According to him, under the baseline scenario,
50 % of the investment would be successfully implemented bringing
income, 20% would be returned without income and the remaining 30 %
will be unprofitable.
"As a result of the study we concluded that creation of investment
funds in Armenia will have a tangible effect on the economy and
contribute to the development of its capital market ", he concluded.
Grant Thornton, a member of Grant Thornton International, was founded
in Armenia in the early 90's. The company provides its customers with
a wide range of auditing, consulting services, as well as advice to
enterprises, commercial banks, financial institutions, government,
local and international organizations.
Among its clients are more than 20 banks, dozens of credit institutions
and insurance companies and foundations in Armenia, Georgia, Tajikistan
and Kyrgyzstan.
The conference on facilitating access to capital for competitive
business was organized by the U.S. Agency for International Development
with the support of Small Enterprise Assistance Fund.
-0--0 - - See more at:
http://arka.am/en/news/business/grant_thornton_study_finds_the_demand_for_equity_i nvestment_in_armenia_in_next_five_years_may_range_/#sthash.HjEIEtSq.dpuf