SWOT Analysis
Strengths
- High-quality accounting standards
- Country openness
- Relatively advanced regulations for VC/PE
Weaknesses
- Democratic institutions inspire little public trust
- Judicial system remains little efficient and prone to corruption
- Minority rights are weakly regulated and protected
- IPO market is non-existing
Opportunities
- Pension funds are increasingly local active players
- Over the longer term, bureaucracy may be gradually reduced, making the business environment more conducive to entrepreneurship
Threats
- The IIPA asked that Peru be elevated to the US Trade Representative’s Special 301 priority watch list
- Local culture about VC/PE needs to be developed
- Unfavorable tax laws and inadequate tax incentives
Outlook
- Peru is considered an incipient new market for PE/VC investment
- Government support for the formation of a PE/VC industry remains tepid
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Comparison within Peer Group
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Separate VC and PE Indices
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