Reframing Finance: New Models of Long-Term Investment Management
Ashby Monk, Rajiv Sharma, and Duncan L. Sinclair
Abstract
The role of financial intermediaries has come under close scrutiny in recent times as many of the practices of these service firms have been exposed for their opaque, rent-seeking and dishonest behavior. This book questions the traditional system of Financial Capitalism by examining how beneficiary organizations such as pension funds, sovereign wealth funds, endowments and foundations can reduce the inefficiencies of intermediaries in the savings-investment channel. This book argues that the large pools of long-term capital held in beneficiary organizations has not been mobilized efficiently e ... More
The role of financial intermediaries has come under close scrutiny in recent times as many of the practices of these service firms have been exposed for their opaque, rent-seeking and dishonest behavior. This book questions the traditional system of Financial Capitalism by examining how beneficiary organizations such as pension funds, sovereign wealth funds, endowments and foundations can reduce the inefficiencies of intermediaries in the savings-investment channel. This book argues that the large pools of long-term capital held in beneficiary organizations has not been mobilized efficiently enough into the capital-intensive long-term projects such as infrastructure, green energy, agriculture, private equity and real estate development. In particular, the book examines a new ‘collaborative’ form of investing that a large number of beneficiary organizations have started to embark on in order to address the problem of mainstream financial intermediation and achieve their long-term investment objectives. The book conceptualizes the ‘collaborative’ model of investment, drawing upon economic sociology, and emphasizes the importance for investors to build their social capital. By providing case study exemplars of collaborative vehicles such as co-investment platforms, joint ventures, and platform companies that invest in infrastructure, agriculture, private equity and real estate, the book provides useful insights for how long-term investment management might be shaped in the future.
Keywords:
Collaborative model,
long-term investment,
financial intermediaries,
re-intermediation,
co-investment,
joint ventures,
platform companies,
relational contracts,
infrastructure investment,
real assets
Bibliographic Information
| Print publication date: 2017 |
Print ISBN-13: 9781503601789 |
| Published to Stanford Scholarship Online: January 2018 |
DOI:10.11126/stanford/9781503601789.001.0001 |
Authors
Affiliations are at time of print publication.
Ashby Monk, author
Stanford University Global Projects Center
Rajiv Sharma, author
Stanford University Global Projects Center
Duncan L. Sinclair, author
Deloitte LLP
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