Schulze Global is proud to be a pioneer in private equity and other forms of non-public investments in frontier markets. With Schulze Global’s frontier-oriented investment products, investors can expect to achieve high returns and diversified risk, all while having a positive impact on the underlying economies in which the firm invests.
Substantial shifts in global GDP and global population are fueling fast-paced growth among the world’s frontier markets. These shifts are driving a variety of secular trends across the frontier: escalating consumption, expansion of infrastructure, a surge in manufacturing, and rising energy demand. These trends are helping to unleash significant economic growth and are providing investment opportunities that offer high risk-adjusted returns.
Frontier markets offer not only attractive returns; they also provide an important hedge. While emerging and developed markets have become economically intertwined and tend to rise and fall together, frontier markets are more disconnected from international trade and money flows, and thus present a risk-profile that is less correlated to the global economy. These economies are starting from a low economic base, and as a result, their growth is often driven by factors that are intrinsic to the market – such as efficiency gains from the introduction of new technologies or management techniques. Frontier markets can, therefore, offer strong performance even during global downturns.
In addition to achieving high returns and diversifying risk, Schulze Global is proud that frontier markets offer an opportunity to do good while doing well. Simply by virtue of pioneering investments in the frontier, Schulze Global is able to make an important contribution to the economic development of these countries – providing much-needed capital to grow businesses, create jobs, and lift incomes. But Schulze Global goes one step further and works with its portfolio companies to ensure that specific impact targets are achieved, a process described in more detail under Double Bottom Line.