Document Type


Publication Date

January 1997




Christopher J. Mailander's discussion of the private equity market identifies what is, by most measures, the central concern of equity investors in foreign enterprises-how to get out of a foreign investment after getting in it.' His strategy for resolving this problem is to make available the liquidity necessary for an investor to exit a foreign investment by tapping the United States capital markets. This can be accomplished, according to Mailander, through the use of American Depositary Receipts (ADRs) on the private equity markets and through the private equity markets themselves. It seems evident that the capital markets have adopted this strategy and that the worldwide market growth in ADRs, as well as Global Depositary Receipts, strongly supports this trend.