What Is Driving The Hunt For Real Assets & Why You Need An Executive Search Partner
Assets come in three categories: financial, intangible, and real. And it’s real assets that are being bought up by businesses positioning themselves for recovery following the pandemic. Other contributing factors driving the hunt for real assets include ongoing fiscal support, low (at the moment) interest rates and the new geopolitical risks of an energy crisis and war in Ukraine.
But what does this all mean, and how do businesses buying real assets find the talent they need to get these types of deals over the line?
What are real assets?
Real assets are tangible, their worth coming from their physical attributes. Examples of real assets include precious metals, businesses, property and land, infrastructure, and natural resources like oil.
One interesting trait of real assets is that they tend to provide a benefit to society – think energy, food, roads, etc.
What types of organisations are buying real assets & why?
It is particularly interesting that a number of very large financial firms have been buying up real assets for quite a long time, presumably in a bid to reduce risk in the event of any financial or economic fallout, while potentially getting attractive returns.
But now, there’s also been considerable change in the financial marketplace. The very obvious reason why is the pandemic, but we also have energy and cost of living crises and war in Europe, which has led to further investment in real assets.
There’s also a form of stability that comes with owning real assets, especially viewed over the long-term, and organisations are diversifying their portfolio in this direction to protect against rising inflation.
And let’s not forget the opportunities that buying real assets provides. With a global real asset value of $235 trillion (48% of which is real estate), there’s a lot of room for investment.
What characteristics does your talent need to have to drive your hunt for real assets forward?
The people who are in demand are those individuals who have a deep investment understanding and experience of real estate, commodities, equipment, and natural resources.
The reason they are so in demand is that real assets provide diversification of an investment portfolio as they often move in opposite directions to financial assets. This is particularly highlighted by the recent problems with Gilts following the mini budget in September 2022.
It takes someone with real market knowledge and understanding to be able to identify and obtain the real assets for your firm that will provide a stable financial position and reduce your risk. It’s such a critical role that finding and securing the right talent should be a top priority – but competition is fierce because so many large corporations want to recruit this type of talent.
How partnering with an executive search firm can help
Finding the right person to help your organisation buy the real assets you need to invest in can be a complex and time-consuming process. That’s because you need someone who understands the marketplace and people…and there are relatively few people who can fill that role.
That gives you the extra challenge of entering the war for talent. Of course, every organisation that wants to invest in real assets needs the right people to do it. The competition is fierce, and there’s definitely an element of ‘who you know’.
In turn, that means that executive search firms are often best placed to find the talent you need. Competitive advantage comes from the people you hire, so it simply makes sense to hire the best there is. And that means partnering with search firms who can connect you with the best there is.
Not only that, but the search process is typically smoother and more efficient, and search firms know where to look for the right candidates.
If you’d like to discuss recruiting the right candidates to drive your hunt for real assets forward,
contact me today and let’s set up time for a call.