PTG Private Equity Investments in Megatrends – new source of return for your capital
Compared to hype or crashes, megatrends do not arise at the whim of the markets. That is why the megatrends of 2030 will be the same as the megatrends of 2021 and so on. For the past decade or so, changes have been emerging that will have a lasting effect on the lives of us all, according to PTG, Plc.
The investment-relevant megatrends are defined by the fact that they:
Remain relevant for 25 to 30 years,
– cover every aspect of our lives, and
– trigger changes of global scope (‘global shifts’)!
Thus, megatrends have high, long-term profit potential! Investing in megatrends also makes great sense for the financial ‘life cycle model’, because the investor chooses those investments that influence his circumstances!
PTG Solutions – The 4 big megatrends in financial investing!
In the following, we would like to define and present our 4 major megatrends in financial investment. Megatrends are not set in stone or ‘regulated’ by law, but they are based on a consensus in the investment community. Therefore, there may be different breakdowns and summaries of megatrends in financial investment. We choose a broad concept with 4 megatrends. From these megatrends we can then define further ‘sub’ megatrends – as we see fit!
1. technological change
New digital technologies are changing the world as we know it. Modern businesses will experience this megatrend across the board, driven by advances in Cloud Computing, Big Data, Artificial Intelligence (AI) and the Internet of Things (IoT). These changes affect FinTech companies as well as e-commerce and healthcare. In medicine, digitalisation has led to faster and more accurate diagnoses. But improved medical treatments and gene therapy are also results of digital progress. The emergence of cryptocurrencies and the digital € will revolutionise banking. The hacking of critical IT infrastructures will boost the field of IT security!
In the automotive industry, digital technologies have accelerated the spread of electric vehicles (e-mobility) and the development of self-driving cars. Robotics as we know it today would be unthinkable without innovations in automation and artificial intelligence (AI). Robots are increasingly capable of performing tasks that could previously only be carried out by humans.
This megatrend will affect all aspects of the economy, boosting productivity and economic growth. Modern companies will continue to use new technologies to their advantage to keep up with or stay ahead of the competition, within the given legal and regulatory framework.
2 Sustainable value creation
The transformation of the economy towards more sustainability is in full swing. Today, almost every listed company is pursuing a strategy to achieve its goals in a sustainable manner. This means operating in an environmentally and socially sustainable manner and complying with the principles of good corporate governance. There are good reasons for this: Companies without such a strategy are increasingly being penalised on the stock exchange. For many investors, compliance with ESG standards (ESG: Environmental, Social, Governance) is an increasingly relevant component of investment decisions.
PTG Solutions – Sustainable value creation as a megatrend will not only promote innovations in areas such as energy generation, e-mobility or recycling. The megatrend has already contributed to the emergence of various new investment styles in the financial investment sector.
3. multipolar world
The new multipolar world order is emerging with new competitors – and new consumers. On the one hand, the USA is increasingly facing competition and is no longer the once undisputed world power. This new competition does not only manifest itself politically. On the economic level, the USA is confronted with the rise of China (we reported!). But in India, too, ambitions to significantly advance the economy can be observed. The development in these two most populous countries on earth is representative of the potential in the emerging markets.
On the other hand, technological development is presenting the economic powers with new challenges. These include the ever-increasing networking of computer systems and devices, the relentlessly growing flow of data or threats from radical forces such as hackers. This megatrend also takes a systematic look at all of this. Clear interactions and interlocking between individual megatrends are also evident here, because IT security is also an element of technological change!
4 Demography and urbanisation
Our society is living more and more in cities. And it is becoming visibly older. Physically and mentally, the “silver” generation is enjoying ever better fitness these days. They are active on many fronts up to a ripe old age and have a high level of material security. The term “best ager” sums this up. As developed economies age rapidly, health care will take a greater share of private and public spending. Innovative companies that offer technologies and new solutions to provide better care at lower cost are in the sweet spot of this development. Here, too, there is an interaction with technological change. Cause and effect are particularly evident here!
However, this megatrend also focuses on the changing consumer behaviour of younger people (Gen-Z), which promotes the development of new trends such as e-sports & video gaming!
PTG Private Equity Investments – How to invest in megatrends?
For investing in megatrends, 3 key factors should be considered:
1. due to the long-term potential, an investment strategy should be chosen that does not rely on short-term, active trading.
2. because megatrends develop over a long period of time, a passive strategy aligned with a megatrend index is therefore advisable (see the chapter on wealth accumulation in times of inflation and low interest rates: the combination of ETFs and savings plans as an optimal form of investment and how to build up wealth even with risky investments with a clever strategy!)
3. because costs have a large, cumulative effect over a long period of time, the necessary attention must be paid to the costs of the investment!
Investing in megatrends can be summarised succinctly as follows: ‘Megatrends move like continental plates: unstoppable and independent of individual events!
In its private equity investments, PTG Solutions, Plc pursues a win-win strategy in which both the innovative companies and the shareholders and PTG itself benefit. Through the targeted support of the innovative companies on their way to market maturity and successful positioning in their sales markets, the growth of these companies is driven forward and their enterprise value increased. This benefits not only the companies themselves, but also PTG’s shareholders, who profit from an increase in the value of their holdings. In this way, the common interest of the innovative companies, the shareholders and PTG in a sustainable and successful development of the economy and society is implemented.
