Investing in frontier and emerging markets attracts worldwide investors by its higher Return on Investments. HighCastle’s broad knowledge of these dynamic markets and our approach to the risk management when selecting the projects to our Platform in partnership with our Authorized Advisers, helping Investors to choose between qualitative businesses and diversify effectively.
Some of the safety hits for Investor when choosing investments in developing countries:
– investment is secured by tangible assets or collateral;
– company revenue is secured in hard currency (e.g., outsourcing and export-oriented businesses);
– whole or part of the business and team can be easily relocated;
– business can generate high returns on investment to cover principals/investment + profit in couple of years under stability secured by one-two terms of elected government;
– investors’ rights like pre-emption rights and tag-along rights are protected, usually through SPV and structure called nominee (a form of trustee) to hold investors shares.
– investing in funds or following the lead investor, both ways of spreading the risk across a group of companies that are chosen by more experienced investors.
– diversification is the key of investors safety.
“According to tradeeconomics.com, Ukraine’s Foreign Direct Investment inflows increased by 759 USD Million in the second quarter of 2016. In the long-term, Ukraine Foreign Direct Investment – net inflow is expected to trend around 927.23 USD Million in 2020, according to the same source. In 2015, FDI, net inflow reached 3 billion and 50 million USD, according to World Bank data”.
“Ukraine is ready for large-scale investment,” Anders Åslund in a great though-piece, outlining key sectors of the Ukrainian economy with the highest potential: infrastructure, energy, agriculture and manufacturing, via Atlantic Council.
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