SECTORS

As AI accelerates faster than forecasters anticipated, it is poised to become a central technology catalyst, dominating global equity market capitalizations by 2030 with over 60% market value.

Our investment approach is based on the belief that profitability and ethical progress can go hand in hand. By backing pioneering companies and projects in the AI sector, we strive to couple significant returns with fostering the growth of responsible AI technologies.

Focus Areas:

1. Foundation Models and Multimodal AI: We invest in advanced models that support text, images, audio, and video, enhancing performance and user experience.
2. AI Hardware and Software Innovations: Improvements in compute hardware and algorithms can reduce AI training costs by 75% annually through 2030, enhancing efficiency and performance - we are keen observers and investors in this space.
3. Ethical AI and Policy Integration: We prioritize ethical AI practices and collaborate with policymakers and governments to cocreate environments for responsible AI development.
4. Productivity and Efficiency: AI solutions significantly boost productivity. AI coding assistants like Copilot could increase software engineer output tenfold by 2030. We are keen to explore how this affects several industries, especially AI driven efficiency in financial services and distribution of healthcare services. Proprietary Data and Competitive Moats in these businesses can be created with high-quality, domain-specific AI training data and we partner with companies with an edge in those fields.

Governments and corporations recognize AI's potential, creating a favorable environment for AI solutions. By investing in this sector, we aim to lead the way toward a technologically advanced and ethically sound future.

Our investment strategy recognizes that long-term value creation in financial services and DeFi hinges on the integration of innovative technologies and sound investment principles. By supporting companies in this space, we aim to bringing together profitability as well as building an efficient and inclusive financial system.

Focus Areas:

1. AI for Wealth Management: AI is poised to entirely transform the wealth management landscape by enabling more sophisticated and personalized investment strategies. Through advanced data analytics and machine learning, AI can analyze vast amounts of financial data, market trends, and economic indicators to generate personalized and actionable insights for family offices. This allows for more informed decision-making and optimized portfolio management. Implementing AI in wealth management also automates routine tasks such as data analysis, reporting, and client communication which improves operational efficiency but also reduces costs by over 40%
2. AI in Lending: Traditional credit scoring methods often fail to capture the full financial picture of potential borrowers. AI can analyze alternative data sources, including social media activity, transaction history, and other non-traditional data, to provide a more comprehensive and accurate assessment of creditworthiness. AI streamlines the loan application and approval process by quickly and accurately evaluating applicant data. This reduces processing times, minimizes human errors, and enhances the customer experience. With AI, loans can be approved faster and more efficiently, meeting the needs of clients with unprecedented speed.AI-driven systems continuously monitor and assess the risk of loan portfolios in real-time. This proactive approach to risk management allows us to make timely adjustments and mitigate potential losses, ensuring the stability and profitability of our lending operations.
3. AI and Credit Mechanisms: AI excels at identifying and preventing fraudulent activities by analyzing transaction patterns and detecting anomalies in real-time. Machine learning algorithms can recognize suspicious behavior and flag potential fraud before it occurs, protecting both clients and firms from financial losses. AI can learn and understand user behavior patterns, making it possible to detect unusual activities that may indicate fraud. By continuously monitoring and analyzing behavior, AI enhances security measures and reduces the likelihood of fraudulent transactions slipping through the cracks. AI enhances traditional credit mechanisms by providing more accurate and dynamic credit scoring models. This not only improves the precision of credit assessments but also allows for more flexible and adaptive credit terms based on real-time financial data and behavior analysis. AI helps ensure regulatory compliance by automating the monitoring and reporting processes. This reduces the risk of non-compliance and enhances transparency
4. Smart Contracts and Tokenization of Traditional Assets : We see this space as foundational to the internet financial system. For instance, Ethereum, the largest smart contract blockchain, powers diverse on-chain activities, reducing the cost of financial services and potentially generating $450 billion in annual fees by 2030. Tokenization allows for easier tracking, trading, and collateralization of funds on public blockchains. In 2023, tokenized treasury funds jumped more than sevenfold to $850 million, with Ethereum emerging as the largest market.
5. Vertical Software Platforms: Platforms that are consolidating financial services for merchants, enabling efficient digital wallet transactions. Digital wallets facilitated 49% of e-commerce transactions in 2021 and are scaling faster than traditional bank accounts, projected to reach 5.6 billion users globally by 2030. We are keen observers and investors in opportunities that will break through in this sector.

Our focus on the digital leisure sector is driven by the transformative potential of artificial intelligence (AI) to lower the average workweek and stimulate digital consumption. Generative AI could reduce labor hours per worker to 4.5 hours in 2030. As a result, consumers may spend more time on online entertainment, content, gaming, e-sports and more. 

Focus Areas:

1. Streaming: Streaming is rapidly displacing linear TV. As of July 2023, streaming accounted for 39% of overall TV consumption, surpassing cable and broadcast. Ad spend on connected TV (CTV) is projected to grow 17% annually, from $25 billion in 2023 to $73 billion in 2030, overtaking linear TV by 2027.
2. Sports, Media, Entertainment: Investment in sports-related streaming projects is transforming how fans engage with their favorite sports. Enhanced streaming platforms provide real-time access to games, exclusive content, and interactive experiences, increasing viewer engagement and monetization opportunities.
3. Digital Gaming Platforms: The growth of digital gaming platforms is reshaping the entertainment landscape. Investments in these platforms support the development of advanced gaming experiences, attracting a larger user base and driving substantial revenue growth.The evolution of multimodal AI is creating more immersive and interactive digital experiences, driving market expansion. Historically, deeper immersion has led to higher monetization, as seen in the gaming industry's growth from $6 billion in 1985 to $24 billion in 1993.
4. Content Creation, Media, and AI-Driven Marketing: The rise of AI is revolutionizing content creation, making it more accessible and cost-effective. AI tools are enabling more people to create high-quality content, further fueling the digital leisure economy. Additionally, AI-driven marketing strategies are optimizing how content is promoted and consumed, increasing engagement and monetization. AI-assisted game creation on user-generated content (UGC) platforms is democratizing content creation. The cost of generating a single 3D asset has dropped by ~99% annually, fostering explosive growth in UGC. Platforms like Roblox have delivered over 470 million experiences globally.
5. Immersive Online Experiences, Digital Leisure Spending: Consumers globally spent 20% of their $34 trillion leisure budget on digitally-facilitated goods and services in 2023. Real digital revenue is projected to grow 16% annually, from ~$1.8 trillion to $5 trillion by 2030, accounting for 43% of all leisure spending.

The digital leisure sector presents unique opportunities for financial returns and innovation. By investing in this area, we aim to lead the transformation towards a more immersive and digitally enriched future.

Our focus on the healthcare and wellness sector, particularly through the integration of artificial intelligence (AI), is driven by the transformative potential of precision therapies, innovative medical technologies, and advancements in medical aesthetics and sports wellness. Precision therapies are helping treat diseases previously considered undruggable, while AI-driven solutions in medical aesthetics and the promotion of sports and physical activities are enhancing overall health, longevity and well-being.

Focus Areas:

1. Precision Therapies: RNA-based medicines and targeted protein degraders (TPDs) are revolutionizing treatment options. These therapies can target a broader range of proteins and tissues, significantly increasing the number of treatable diseases. Advanced precision therapy trials are more cost-effective, testing a wider variety of biological targets and increasing the probability of identifying successful therapies.
2. Medical Aesthetics and AI: The medical aesthetics industry is experiencing significant growth, driven by advancements in AI-powered skin analysis. AI technologies are enabling personalized skincare solutions and home apps that monitor skin health and performance, making skincare more accessible and tailored to individual needs. This focus on personalized aesthetics is enhancing consumer satisfaction and driving industry growth.
3. Innovation in Pharmaceuticals: Traditional pharmaceuticals have reached diminishing returns in reducing death rates for diseases like cancer and cardiovascular conditions. Emerging precision therapies offer new hope by targeting DNA, RNA, and proteins, potentially lowering death rates across various diseases, including neurological disorders.
4. Sports and Wellness: Physical activities such as sports and yoga are essential for promoting overall wellness. These activities improve physical health, reduce stress, and enhance mental well-being. Investment in wellness programs and technologies that encourage active lifestyles contributes to a holistic approach to health, fostering both physical and mental resilience.
5. Cancer Treatment: The age-adjusted mortality rate for cancer has only declined by ~19% since 1990. Emerging diagnostics and improved therapies could dramatically reduce cancer mortality, especially given the disruption in cancer care caused by the COVID-19 pandemic.

The healthcare and wellness sector presents unique opportunities for financial returns and innovation. By investing in this area, we aim to lead the transformation towards a healthier and more technologically advanced future.

Our focus on the clean energy sector is driven by the conviction that commercial upside can spearhead and turbocharge the transition towards a decarbonized world. As the global community faces the pressing challenges of climate change, energy security, and environmental degradation, the demand for clean, efficient, and renewable energy sources has never been more critical.

Our investment strategy is rooted in the understanding that profitability and sustainability are not mutually exclusive. By identifying and supporting innovative companies and projects within the clean energy space, we aim to generate substantial returns while contributing to the global effort to reduce carbon emissions and combat climate change.

Focus Areas:

1. Renewable Energy Generation: We invest in companies and projects that harness energy from renewable sources such as solar, biogas, waste-to-energy, wind, hydro, and geothermal. These technologies are pivotal in reducing reliance on fossil fuels and minimizing environmental impact.
2. Energy Storage Solutions: Effective energy storage systems are essential for the reliability and efficiency of renewable energy. We support advancements in battery technologies, grid storage solutions, and other innovations that enable the seamless integration of renewable energy into the power grid.
3. Energy Efficiency: Improving energy efficiency across various sectors is crucial for reducing overall energy consumption and emissions. Our investments target companies that develop cutting-edge technologies and solutions to enhance energy efficiency in buildings, transportation, and industrial processes.
4. Smart Grids and Infrastructure: A modernized, intelligent energy infrastructure is key to managing and distributing clean energy effectively. We invest in smart grid technologies, advanced metering systems, and infrastructure projects that enhance the resilience and flexibility of energy networks.
5. Sustainable and Electric Transportation: The transportation sector is a significant contributor to global emissions. We support innovations in electric vehicles (EVs), charging infrastructure, and other sustainable transportation solutions that aim to reduce the carbon footprint of mobility.

The clean energy sector presents a unique opportunity to drive financial returns while making a positive environmental impact. Governments and corporations worldwide are committing to ambitious decarbonization goals, creating a favorable regulatory environment and a growing market for clean energy solutions. By investing in this sector, we intend to be at the forefront of a global transition towards a sustainable energy future.

Our focus on infrastructure investments underscores the critical role that robust infrastructure plays in driving sustained economic growth and technological advancement. This is particularly relevant for regions like India and the Middle East, where developing and modernizing infrastructure is essential to support the burgeoning technological and energy transition landscape as the infrastructure investments today lays the foundation for the next 10-20 years.

Focus Areas:

1. Power Supply and Energy Storage: Reliable power supply and efficient energy storage are the cornerstones of technological advancement. Investing in sustainable and efficient energy infrastructure ensures that manufacturing facilities can operate without interruptions. Renewable energy sources, smart grids, and advanced energy storage solutions are crucial to these developments.
2. Advanced Transportation Networks: Efficient transportation networks are vital for the smooth logistics and distribution of AI chips and related technologies. Investments in high-speed rail, modern highways, and advanced port facilities enhance the efficiency of supply chains, reducing costs and time delays. These networks also facilitate the movement of skilled labor, fostering a dynamic and responsive workforce.
3. Manufacturing Facilities and Innovation Hubs: State-of-the-art manufacturing facilities and innovation hubs are essential for the production and development of AI technologies. These facilities require substantial investment in modern infrastructure, including clean rooms, advanced machinery, and research labs. Innovation hubs, often located within tech parks, foster collaboration between academia, industry, and startups, driving technological breakthroughs and commercialization.
4. Smart Cities and Urban Development: The development of smart cities, equipped with AI-driven management systems, represents the future of urban living. Investments in smart infrastructure enhance urban mobility, reduce energy consumption, and improve the quality of life for residents. These cities become magnets for talent and investment, further accelerating economic growth.

Investing in infrastructure is not just about building roads and bridges; it's about creating a robust framework that supports the technological and economic aspirations of a region. In India and the Middle East, where the potential for technological advancement is immense, robust infrastructure is the key to unlocking future competitiveness. By focusing on reliable power supply, energy storage, advanced transportation networks, high-speed internet connectivity, and modern manufacturing facilities, we can drive the AI revolution and position these economies at the forefront of global innovation. These investments will foster innovation, enhance productivity, and attract further investments, ensuring sustained economic growth and technological advancement for decades to come.