During my 25-year tenure at the World Bank, my colleagues and I observed a critical flaw in the way financial institutions typically invest in emerging markets. They often invest in companies that are focused on serving the needs of the elite, upscale segment of the local population. Although this market segment might exhibit a relatively high degree of economic certainty, it is usually quite small—often comprised of just several thousand or fewer people—and without prospects for sustained growth. Over time, I have seen that this approach sacrifices significant long-term growth potential for short-term success.
Against this backdrop, my colleagues and I have developed an investment strategy focused on successful companies with strong business linkages to middle-class consumer bases with rapidly expanding incomes rather than companies targeting a market’s elite fringe. With this strategy, our Linkage Emerging Markets Partnership capitalizes on the needs of burgeoning middle-income populations that are projected to grow into the billions, creating the potential for substantially rising revenues and asset growth over the long term.
Joseph Wambia
CEO/Managing Partner
Linkage Capital Partners, LLC
