How geopolitical power shifts will affect investment opportunities

In this episode of EY Next Wave Private Equity Podcast, the speakers discuss how shifts in geopolitical power will affect growth and investment opportunities.

Related topics Private equity

Famke Krumbmüller, EY EMEIA Leader, Global Geostrategic Business Group joins host Winna Brown to discuss how investment opportunities and growth will be affected by shifts in geopolitical power.

As a result of the war in Ukraine, three major power blocs are emerging and it has become critical for companies to understand the allies of the markets in which they are invested.

  1. Developed markets are leading one bloc, with the EU and US having reached new levels of cooperation. Relatedly, the North Atlantic Treaty Organization (NATO) has been reinvigorated.
  2. Russia is leading a small bloc of countries, including several autocracies.
  3. A significant number of emerging markets, including China and India, are not aligning with either of these blocs, preferring to pursue a more neutral or transactional stance.

Several strategic sectors (i.e. farming and medical equipment, agriculture and food commodities and critical infrastructure) have come into focus due to their relevance to national security and economic growth and the resulting geostrategic competition between these great powers in those strategic sectors. Cross-border deals have decreased as a share of global M&A in favor of more regional and intra-area deals. In this emerging multipolar world, companies are likely to see increased government intervention in their supply chains, limitations on or rejections of cross-border investments, export controls, restrictive trade measures and greater regulatory scrutiny.

Key takeaways:

Three priorities companies can incorporate to adjust to the new geopolitical environment include:

  • Assess current and future political risks annually
  • Establish a cross-functional geostrategic team
  • Refine company strategy to match new geopolitical realities

For your convenience, full text transcript of this podcast is also available. Read the transcript.

Presenters

Famke Krumbmüller
EY EMEIA Activation Leader, Geostrategic Business Group
Winna Brown
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP

Podcast

Episode 51

Duration 24m 00s

In this series

Series overview
(Event List - Manual)

How geopolitical power shifts will affect investment opportunities

In this episode of EY Next Wave Private Equity Podcast, the speakers discuss how shifts in geopolitical power will affect growth and investment opportunities.
Podcast

Episode 51

Duration
24m 00s

Presenters

Famke Krumbmüller

EY EMEIA Activation Leader, Geostrategic Business Group

Winna Brown

EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP

What ESG means to KKR

In this episode, the speakers discuss why KKR views ESG as a business opportunity that both creates and protects value over time.
Podcast

Episode 50

Duration
24m 00s

Presenters

Winna Brown

EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP

What’s in store for SPACs

In this episode, the speakers explore why SPACs remain highly relevant despite market volatility and regulatory headwinds.
Podcast

Episode 49

Duration
30m 00s

Presenters

Karim Anani

EY Americas Financial Accounting Advisory Services Transactions Leader; SPAC Co-Leader

Winna Brown

EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP

How today’s economic rebalancing is impacting PE

In this episode, the speakers discuss how macroeconomic factors such as inflation, monetary policy, and the labor shortage will impact PE investment decisions and theses.
Podcast

Episode 48

Duration
23m 00s

Presenters

Gregory Daco

EY-Parthenon Chief Economist, Strategy and Transactions, Ernst & Young LLP

Winna Brown

EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP

PE Pulse: Five takeaways from 1Q 2022

In this episode, Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 1Q 2022 that are top of mind for PE investors.
Podcast

Episode 47

Duration
10m 00s

Presenters

Winna Brown

EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP

What PE is outsourcing to create value

In this episode, the speakers discuss what tasks PE is outsourcing across business functions such as finance, IT, HR and customer service to create value.
Podcast

Episode 46

Duration
20m 33s

Presenters

Winna Brown

EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP

How PE can use the ‘See, Solve, Scale’ process to screen investments

In this episode, our speakers explore how Professor Danny Warshay’s “See, Solve, Scale” entrepreneurial process can help PE investors screen potential investments.
Podcast

Episode 45

Duration
23m 00s

Presenters

Danny Warshay

Executive Director of the Nelson Center for Entrepreneurship at Brown University

Winna Brown

EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP

Why mentoring matters for women in PE

In this episode, our speakers reveal how mentorship programs can help women build long-term careers in PE.
Podcast

Episode 44

Duration
26m 00s

Presenters

Pam Jackson

CEO of Level20

Winna Brown

EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP