A New World of Financial Power Brokers

The last decade has seen new financial power brokers emerge including emerging economy central banks, sovereign wealth funds, private equity and hedge funds – and in 2008 stateholders with pockets full of stimulus funding. However, stateholders are increasingly constrained by sovereign debt issues as the developed world continues to struggle economically and financially – and are also starting to feel a backlash from their citizens. The potential “white knights” in this ongoing crisis are the wealthy RDE central banks, who have been approached by Eurozone officials to try to secure investment in the European Financial Stability Fund – to date without success. With the outcome of the sovereign debt crisis yet to be seen, the developments this year have underscored a significant change in both economic and geopolitical relationships, as the “developed” world is increasingly looking for the “developing” world to secure its future.

These new financial power brokers inside and outside the boardroom will have a strong influence on both the governance models and success of industry sectors and companies  – as well as the development of countries in an interconnected global economic and financial system. In this report we profile some of the major financial power brokers in different areas: Sovereign wealth funds, private equity and hedge funds.

Questions for Business Leaders

• How will the new financial order evolve?  What will be the role of banks – and who will the new players be?  How will this impact us?
• What impact will the new financial power brokers have on the movement of capital and investment around the world?  What effect will they have on the funding and terms available to our business?
• Which financial providers and shareholders do we want in future – and which are we likely to get?

The GT Trend Report: Shapers & Influencers – Financial Power Brokers offers profiles of some of the leading financial power brokers and food for thought on these topics.