Steppes Alternative Asset Management are targeting growth markets as a core element of its future business.
Despite short term volatility, growth markets such as China, India,SE Asia and Africa, are the engines for global growth. Growth markets GDP has now overtaken developed markets and accounts for more than 50% of global GDP. Growth markets currently account for 22% of the global equity market value, and this is forecast to grow to 39% by 2030.
The global population has grown from 3.6 billion in 1970 to 7.3 billion in 2014 and is forecast to grow to over 8.5 billion by 2030 and over 9.5 billion by 2050 (over two thirds of whom will be in developing markets). The global middle class population was 1.8 billion at the end of 2009, and is projected to grow to 3.2 billion by 2020 and 4.8 billion by 2030.
Urbanisation will continue to drive growth, between now and 2050, it is predicted that the 3.5 billion people currently living in cities around the world will increase to over 4.5 billion by 2030 and over 6 billion by 2050.
The Asia Pacific region currently has 55% of the worlds population, 30% of global GDP but less than 5% of the Alternative Asset Management industry, and we believe the factors mentioned above will drive investment in this area.