After nearly three decades many of the emerging markets have already more or less emerged. Russia, for example, is already classed as a high income market by the UNDP. The changes are being felt in the fund business too where there is a process of consolidation going on.
The Stockholm based East Capital made its name by setting up a Russia fund in 2008 to capitalise on the emerging middle class, but it has been expanding its geography since then. It already bought a China fund several years ago and in the last 24 months it has bought another 18 funds, including some develop market funds.
Following the 2008 crisis the business was consolidating anyway, even without the maturation of the emerging markets and funds now need a certain scale to operate. bne IntelliNews editor-in-chief Ben Aris talks to Albin Rosengren, chairman of East Capital’s Financial Institution Fund and head of distribution about these changes and more.
Ben Aris, editor-in-chief, bne IntelliNews
Albin Rosengren, chairman of East Capital’s Financial Institution Fund and head of distribution