Catalyst-driven value investments in BRIC companies are transforming them, Viatcheslav said while giving a presentation on the sidelines of the 12th Jeddah Economic Forum (JEF), which concluded on Tuesday.
Altera Capital, a management and advisory group, functions as an adjunct to its public and private sector clients' in house department or for the review, design, implementation and management of strategic and complex major projects. Altera is committed to encourage social improvement by placing an ethical approach to business at the core of its activities.
Altera is predominantly active in advisory services related to infrastructure and public private partnerships, Viatcheslav said.
Prior to co-founding Altera in September 2010, Viatcheslav was an adviser to the Ministry of Economic Development of Russia, which he joined in the midst of the global economic crisis in March 2009. He designed the Russian Direct Investment Fund created by the Russian president's decree in 2011, contributed to the success of the Saint Petersburg International Economic Forum and introduced a set of measures to improve the investment climate in the Russian Federation.
Viatcheslav, whose presentation was attended by prominent Saudi businessmen, said A2G is an absolute return product created by an experienced and successful investment team to capitalize on the liquid public investment opportunities in BRIC markets.
Quoting an IMF report, Viatcheslav said Brazil with its $2.5 trillion economy was the world's sixth economy set to become fifth largest by 2016.
About BRIC's investment theses, he said, Brazil's was an under levered economy; its private debt is at 62 percent of the GDP, government debt is at 66 percent and bank loans at 50 percent of the GDP.
Brazil has favorable net long commodities exposure to global growth - net export of $50 billion in soft commodities and $30 billion in ore and metals, he pointed out.
He said Russia's $1.8 trillion economy was the world's 9th and heading toward becoming 8th in 2016, with capitalization to the GDP at 45 percent among the lowest in EM.
He said powerful domestic growth drivers for Russia include productivity, which grows as Russia transforms from an administrative to a market economy, and fixed asset investment, which is increasing to meet the modernization goals.
About India, Viatcheslav said the country ranked 10th in the world with its $1.8 trillion economy and would become 9th by 2016.
He said with its lowest GDP/capita at $1,500, India creates a sustainable source of consumer spending growth.
He explained that with an explosive labor force growth - 110 million new workers would join by 2020 from today's base of 500 million. Urbanization will jump to 37 percent by 2020 boosting demand for resources, productivity and wealth growth. About 290 million people will move to cities by 2030, 650 million by 2050.
Viatcheslav said the $7.2 trillion economy of China was the world's second, and if it sustains highest growth it will overtake the US by 2025.
With a 7-8 percent long-term growth and progressive decrease in dependence on external demand, urbanization still a dominant driver of high growth.
Ara G. Margaryan, director-Middle East, North Africa, South Asia (MENASA) of St. Petersburg International Economic Forum Foundation, said the next St. Petersburg International Economic Forum (SPIEF) will be held from June 21-23.
Since 2006, SPIEF which is held under the auspices of the president of the Russian Federation, has attracted 4,000 Russian and international participants, representing government and business leaders from around the world, Margaryan said.
