Today’s dynamic and uncertain investment environment makes investment acumen a prized and essential quality. Whether it’s an investment manager or institutional investor seeking to deploy capital, understanding the market, which can sometimes change on a dime, is imperative.
Beyond understanding the market, investors also need to understand themselves in relation to what their immediate and long-term goals are as well as their values.
That’s where Arshad Azim, the Managing Principal of Crescentem steps in.
Arshad Azim knows that institutional investors are always seeking new ways to maximize returns while mitigating risk. In his role at Crescentem, Azim is a recognized expert in alternative investments globally. His insights on how institutional investors in the US and GCC (Gulf Cooperation Council) can achieve their investment goals have been shared in digital publications worldwide.
For Azim, it’s all about understanding the investment landscape, and he’s had years of experience operating in investment landscapes of all kinds. Raising capital largely from the U.S., the Middle East and the Far East, Crescentem has focused on the GCC primarily. That includes Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain.
Operating within these diverse markets, Arshad Azim is on a mission to demystify alternative investments as an asset class and bridge market gaps.
Investment landscapes both in the US and the GCC are unique. While the US is a mature market with various accessible investment opportunities, the GCC presents an important landscape. Azim wasted no time in his pursuit of knowledge, and rapidly built connections and experience managing capital and advising companies who seek to expand their portfolios within the GCC.
When seasoned investors think about the GCC, they often think about the role of sovereign wealth funds, oil revenues and significant infrastructure projects, but according to Arshad Azim, it represents so much more than that and investors should be happy to hear that there is untapped potential.
“The visionary leadership of GCC has done an outstanding job of guiding their respective economies towards responsible fiscal policies which will continue to lead to significant tailwinds in a turbulent global investment landscape,” says Azim
For Arshad Azim, the appeal of alternative investments in various international markets isn’t just about diversification but about achieving consistent returns that are perfectly aligned with institutional objectives.
“Alternative investments allow institutions to venture outside traditional stocks and bonds, tapping into assets with low correlations to conventional markets. This means more resilience during downturns and enhanced performance during booms,” says Azim.
In addition, one strategy Arshad Azim has successfully employed is forging cross-regional partnerships. He stresses the importance of understanding the shared mutual interest of US and GCC investors and thinks that investors should find common ground to build strategic partnerships and share in the returns.
“One example is that US investors can benefit from the growth potential in GCC’s infrastructure and technology sectors while GCC investors can explore more mature yet innovative sectors in the US,” he suggests.
An advocate for innovation, Azim believes that integrating and learning about technology is also crucial. Whether it’s by using advanced analytics to evaluate investment opportunities or blockchain to enhance transparency in transactions, technological advancements can significantly enhance returns.
While there are various cultural and regulatory differences between the US and GCC, Azim thinks they can be overcome.
“For US investors looking to venture into the GCC, understanding local customs, business etiquettes, and regulatory frameworks is crucial. Similarly, GCC investors must be attuned to the regulatory nuances and market dynamics in the US.”
Another note Arshad Azim adds is that cross-border investments pose currency risks as fluctuations can impact returns significantly. For this reason, he suggests employing hedging strategies to safeguard investments from potential adverse currency movements.
Arshad Azim says that while the paths to maximizing returns for US and GCC institutional investors might differ, the underlying principles remain consistent: diversify, understand the landscape, be adaptive and always keep an eye on the ever-evolving global market.
Arshad Azim’s expertise and vision underscore the importance of these principles. Through Crescentem, he continues to guide institutions while providing valuable insights, helping them navigate the intricacies of both the US and GCC investment arenas.
