Rethinking Capital Formation
We are building a ‘best-in-class’ advisory service that empowers Alternative Investment Managers.
We are facilitating introductions to Nordic smart money.
The perils of short-termism.
Investing to endure benefits of business and society is a long-term process. Time horizons matter, because creating long-term value in an environment where systemic issues need to be resolved requires consistent deployment of capital over many years. Research has shown that a combination of technological innovation and a relentless pursuit of profits in the short-term has cut the lifespan of S&P 500 companies from sixty-one years in the 1950s to eighteen years. More than one-third of the largest public companies in the world has had at least three CEOs in just 10 years. This trend undermines attempts to tackle problems that are facing humanity such as climate change or inequality. The systems thinking and deep collaboration that we need to address global challenges will not emerge from short-term practices.
Private markets hold some of the largest and most compelling investment opportunities, waiting to be unlocked.
