New global power-brokers

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A helpful report from McKinsey Global Institute to get a sense of who will be pulling strings of global investment in future. Although smaller overall than pensions/insurance/mutual funds, petrodollar and Far-East Sovereign funds are large enough to have a big impact. If your business is in a sector where these groups start active investment, better hope they act wisely. One sovereign wealth fund, for example, engages in what can only be described as 70s-style corporate portfolio management, based on crude growth/share methods with no attempt at any strategic understanding of the sectors they are buying into or the businesses they are ‘managing’. If this is common, there could be trouble ahead not only for their own prospects but for the sectors in which they invest. The last thing we need on emerging from such a bad down-turn is ill-informed strategic management by those with the resources and clout to make a difference.

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