One of the most innovative ideas in private infrastructure funding is to scale and package financing in ways that appeal to investors. Many nations in Latin America had considerable success in building infrastructure through alternative arrangements with private investors.
Distressed debt offers the highest potential return of any type of debt security. Using all the available information can turn the danger of bankruptcy into the opportunity to gain control of the company.
Ashton Global has historically used ESG factors which are vital when valuing companies in emerging and frontier markets. We utilize the Five Forces Model from Michael Porter when applying ESG analysis to our investments.
The idea of investing in healthcare real estate is intuitively appealing. The healthcare and real estate sectors often outperform the S&P 500. When we look closer, a combination of demographic and economic factors supports the growth of healthcare real estate.
Bhutan combines a strong record of economic growth with an equally impressive commitment to the environment, society, and good governance. Bhutan also enjoys a favorable location between India and China, two of the fastest-growing economies in the world.
Kenya already has an impressive record for developing its infrastructure and power system. According to the World Economic Forum (WEF) Global Competitiveness Report, Kenya has the most competitive economy in East Africa. Although it is still a frontier market, Kenya's road quality is above average at 61 out of the 140 nations evaluated by the WEF.
Stock markets in Latin America are like the US markets of the late 20th century in many respects. The Latin American equivalent of the post-WWII baby boom occurred decades later, which suggests that stock valuations could increase substantially.
Emerging markets offer favorable conditions for the growth of direct lending. Direct lending is not only profitable for investors, but it also supports communities by providing more affordable credit to job-creating small businesses.
Historically, small businesses without extensive credit histories were still able to obtain loans and leases for equipment. Real estate, equipment, and other business assets could be used as collateral for loans. Unfortunately, the severity of the recession reduced the value of some business equipment along with real estate prices.
There is an enormous unfulfilled demand for water infrastructure. Private investors who meet that demand may be able to earn excess returns while supporting the sustainable development of public resources. The American Society of Civil Engineers calculated that the US requires an additional $82 billion each year in government spending on water infrastructure.
The best investments often reveal themselves during downturns, and India has shown strength in adversity. India’s economy continued to thrive even as rising interest rates in the United States put pressure on emerging markets.
Although Asia still presents opportunities, excess returns are becoming more difficult to find as markets continue to develop. Growth is increasing in less developed countries, while former leaders are slowing down.
Emerging managers substantially outperform more mature hedge funds because they are more nimble and can invest in ideas that are often overlooked by larger firms. According to a study by Preqin, emerging funds (less than three years old) earned an average of 12.2% versus the overall hedge fund industry’s return of 7.7%
Litigation finance is the provision of funds by a third party to a plaintiff in exchange for part of a legal settlement. It can also involve directly financing attorneys and plaintiffs to pursue cases against large defendants. The investor typically receives a specific multiple of the initial investment or a percentage of the settlement for a successful case.
Current valuation levels make the traditional case for global investing much stronger. International stocks provide the benefits of diversification, and they also produce high returns on their own. The run-up in US stock prices means that foreign stocks are currently under-owned, relatively inexpensive, and likely to outperform.
While unpredictable protectionist measures rattled US markets during 2019, Africa has been moving toward free trade. The total economic output of Sub-Saharan Africa is predicted to reach over $2 trillion by 2020, up from just $300 billion in 2000.