FT Entrepreneurs “The way I see it, everything is up for buying and selling” MOHAMMAD ZAHOOR BUSINESS UNDER FIRE FACING DOWN RULING CLANS AND REBELS IN WARTORN UKRAINE BY YURI BENDER WOMEN ON THE RISE IN LEBANON HAITI REBORN THE AMBITIOUS WEALTH COLUMN ROLLSROYCE GHOST SERIES II WWW.FT.COMWEALTH MAY 2015 Ft WEALtH MAY 2015 it’s entrepreneurship with a mission to change the whole system covEr pHotogrApH Taking the extra step dAvid pArrY Special reports editor Leyla Boulton FT Wealth editor Hugo Greenhalgh Deputy editor Rohit Jaggi Production editor George Kyriakos Art director Jonathan Saunders Picture editor Michael Crabtree Sub-editor Philip Parrish Global sales director Dominic Good Global relationship director for banking and finance Valerie Xiberras Publishing systems manager Andrea Frias-Andrade Advertising production Daniel Lesar contributors Aaron Stanley is the FT’s Washington bureau manager Daniel Ben-Ami is a freelance journalist and writer Yuri Bender is editor-in-chief of Professional Wealth Management Everyone has their own notion about entrepreneurship. “You can truly Emma Boyde is a commissioning editor for be creative and have the freedom to create whatever innovation and FT Special Reports Stephen Foley is the FT’s US investment product you like,” says Weili Dai, co-founder of Marvell Technology correspondent Group, a global semi-conductor company. To show that Haiti “is Henry Foy is the FT’s central Europe not a pariah that can only export cheap apparel and mangoes”, adds correspondent Maarten Boute, a founder of Sûrtab, which makes Android-powered, Andrew Jack is editor of FirstFT Maya Jaggi is a cultural journalist and critic low-cost tablets. And for Mohammad Zahoor, one of Ukraine’s most Rohit Jaggi is the FT’s aircraft, car and prominent foreign businessmen, “everything is up for buying and motorcycle columnist selling”. Different voices from disparate places around the world. John Kenchington is editor of Investment In this special edition of FT Wealth dedicated to entrepreneurs, we Adviser, an FT publication Jeremy Hazlehurst is founder of Family Capital, do not seek to add our own view, but to showcase the great variety a website for the family business sector of men and women who have taken that extra step to start their own Sarah Murray is a regular FT contributor company. And what a range it is. We report from the UK, Ukraine, Ania Nussbaum is an FT intern Lebanon, the US, Haiti, China, Venezuela and Poland on the state of Andres Schipani is the FT’s Andes correspondent entrepreneurialism around the globe. Matthew Vincent is the FT’s deputy companies editor Is there a common theme? Hala Fadel, chairwoman for the pan- Lucy Warwick-Ching is the FT’s online Arab region of the MIT Enterprise Forum, should have the last Money editor word: “It’s not just about making money; it’s entrepreneurship with a mission to change the whole system.” YOUR NEXT Hugo Greenhalgh, Editor FT wEalTh [email protected] 26 June 2015 4 |Ft.coM/WEALtH contEnts 56 OPENINGS 6 invEstMEnt Focus The global property market, with comment by Liam Bailey 8 tHE idEAs coLuMn 46 Challenging the assumption that 8 higher risk means higher reward 10 tHE ricH coLuMn Social investors are increasingly attracted to youthful idealism 18 DIEZ INSIGHT TORO 36 EQuitiEs AN JU Is the long-term outperformance of founder-led companies a fluke? 40 invEstMEnt Crowdfunding is gathering pace as a TZ/CORBIS; source of finance for start-ups FEATURES 42 pHiLAntHropY SCHUL More and more donors are opting for 12 crisis MAnAgEMEnt direct investing over writing cheques Foreign investors in Ukraine are 44 businEss guru RICHARD sensing potential in the country — if Weili Dai of Marvell Technology it can break the hold of the oligarchs 46 corrEspondEnt BIESEN; and modernise its economy Venezuelan art in the age of austerity N 48 corrEspondEnt VA 24 Y 18 bAcKing bEirut Janusz Palikot is a political maverick A quiet revolution is happening in who wants to be president of Poland Lebanon as female entrepreneurs 50 dEbAtE THIERR attract attention from investors The rise of the Asian entrepreneur 52 booK rEviEW 24 HEALtHY proFits 54 Once Upon a Time in Russia by REUTERS; America’s health reforms have Ben Mezrich been a catalyst for technology 54 cAr rEviEW ventures focused on lifestyle The Rolls-Royce Ghost FRANCK; 56 LiFEstYLE 32 HopE For HAiti Flying the Tecnam P2006T Twin STEVE Industries old and new are 58 AMbitious WEALtH getting the country back on How US east coast cities are trying to track after 2010’s earthquake stop the brain drain to Silicon Valley PHOTOS: Ft.coM/WEALtH|5 INVESTMENT FOCUS LUCY WARWICKCHING GRAPHIC BY RUSSELL BIRKETT Global village s fears of a UK property bubble increase, investors in the country are turning to overseas markets in search of diversification, decent liquidity Prime Global and solid returns. Cities Index A House price rises in most developed economies have been fuelled Annual % change Zurich by attempts by central banks to sustain to December 2014 -8.0 economic recovery by holding long-term interest rates at record lows over the past five years. 5.1 London The Knight Frank Prime Global Cities Index, a measure of price movements in luxury residential Vancouver 7.5 13.4 Dublin property, rose 4.2 per cent in 2014. Properties Paris in 24 of the 32 cities in the index 18.8 New York -3.5 either held or increased their San Francisco 14.3 Geneva value. BlackRock Real Estate, the -2.0 property arm of the world’s biggest Los Angeles Madrid fund manager, estimates the $12.9tn 13.0 5.1 global real estate market could nearly Miami 11.5 double in value by 2020. -2.0 Monaco Weak spots remain, however, and the contrast between the US and Europe is stark. The average 1.5 Rome price of a luxury property in one of the four US cities tracked by Knight Frank ended last year 14.4 per cent higher, while the equivalent home in Europe rose just 0.7 per cent. Investors face an uncertain year, with possible new property taxes in London and New York, and potential government moves to cool overheated housing markets in the biggest Asian cities. 8.5% Rise in San Francisco’s Performance over the past three years commercial rents in 2014 (Global property funds, cumulative returns, % to April 12 2015) (Savills World Research Top 3 funds Bottom 3 funds 12 Cities 2015) Brookield Global FP Charteris Listed Real Estate Ucits Acc 69.7% Property B Acc 37.8% Third Avenue Schroder Global Real Estate Val 64.0% Property Inc Max A Acc 30.7% Fidelity Global SLI Global Real Property Acc 58.7% Estate Ret Acc 16.0% 6 FT.COMWEALTH WORLD PROPERTY OUTLOOK LIAM BAILEY 18.3% 65% Returns for buy-to-let landlords of investment deals in in the UK in 2014 the London office market (Wriglesworth) came from overseas in 2014 (Savills World Research The biggest theme underpinning global 12 Cities 2015) property investment activity has been the ultra-low interest rate environment that the main world economies have experienced over the past five years. This has led to a compression of yields as investors have competed ever harder to secure prime property in city markets such as London, Munich, New York, Singapore and Sydney. This squeeze on investment returns, and the expectation of interest rate rises in 2015, is acting to push investors to look for more risk. Demand for property in markets such as Paris, which has been overlooked over the past four years, is likely to rise. More investors are betting on an upswing in recovery markets such as Dublin and Madrid. Moscow -3.7 The author is head of residential research for Knight Frank Vienna -3.0 Seoul 5.3 -0.5 Beijing Tokyo 8.1 11.1% Increase in prime Tel Aviv 10.3 Delhi 1.8 Shanghai 0 residential rents in Tokyo Mumbai 2.9 Hong Kong 1.1 (Knight Frank Prime Global Rental Index) Bangkok 5.1 12% 1.4 Dubai Growth in Singapore’s Nairobi 0.3 office rents in 2014 (Savills World Research Bangalore 10.1 12 Cities 2015) 0.5 Kuala Lumpur -12.4 Singapore 6.5% Increase in prime rents in 2014 Cape Town 13.2 11.2 Jakarta Sydney 11.0 in the Middle East, the highest increase among world regions year on year (Knight Frank Prime 27.1bn 8.1% Global Rental Index) Invested into New York’s Increase in prime rents office market in 2014 in Dubai in 2014 (Savills World Research 12 Cities 2015) (Knight Frank Prime Global Rental Index) Source: Morningstar FT.COMWEALTH7 THE IDEAS COLUMN JAMES MACKINTOSH Risk worth taking? he basic principle of relatively safe holdings and history PutWrite index has beaten the S&P all financial theory is suggests you will retire rather richer than 500 handily and been less volatile. deeply embedded in you otherwise might. Investors will pay up for peace of mind. the investor psyche: But while steady shares have made The easiest proxy for how much more risk means more decent returns and long-dated bonds Mr Market is willing to pay the seller reward. It makes have beaten equities over a quarter of of puts is the Vix index for America’s Tperfect sense — why a century, there are times when risk- S&P 500 index, or equivalent measures would someone take bigger risks if they taking is rewarded. Investors need to of “implied volatility” elsewhere. When did not expect bigger rewards? be thinking not just about taking risk the Vix is high, sellers of puts are paid a The unthinking acceptance of the but also what reward is on offer.