Wazuku Capital launched this week, offering boutique capital introduction services focused on placing Asian based capital into North American investments while taking a hands-on approach to build value and grow companies. Wazuku Advisory Group Principal and Wazuku Capital Founding Partner Stephen Kukucha writes about why the firm is making this important expansion.
A global economy in flux
While we are seeing a continued trend towards globalization and the free flow of goods and capital, anti-globalization political forces are having challenging, real-world consequences. Think of the Greek debt crisis, Brexit and the Pandora’s box of issues that Donald Trump has opened—walls and the disintegration of NAFTA, to name two.
These issues are being compounded by geopolitical stresses as Russia becomes increasingly emboldened and China flexes its economic muscle. As a result of these fractures, and often surprise fluctuations, economies are becoming increasingly unstable and unreliable. Smart money is looking for stable environments and solid investments where there is still an opportunity for growth.
Economic imbalance & the US election – more fallout & consequences?
While globalization has helped raise the world’s overall standard of living—especially amongst the very poor (global statistics play this out), many people in North America and Europe feel psychologically left behind. This has led to uncertainty, anger and political instability as people look to blame both governments and the notorious “one percent” for their perceived loss of opportunity. The concern and fear borne of this discrepancy has the potential to create far-reaching and potentially damaging social and economic results in the US (as it is doing in Europe). No doubt November’s US election will be a key turning point, but it remains to be seen whether the US will turn inwards (as large sections of Britain did). Regardless, there will be change—and there will be winners and losers.
Canada as an island of political and (relative) economic stability
By contrast, Canada is emerging as an island of relative stability, not to mention political progressiveness. While our dollar is comparatively low vs. where it was three or four years ago (largely due to depressed commodity prices, especially oil), many areas of our economy thrive on a lower dollar and overall we are in a strong position except for some challenged geographic pockets. In this respect, we have avoided some of the rougher edges and inequality that is plaguing much of the world.
As well, politically, to their credit, our federal and provincial leaders are doing their best to use policy tools to address economic imbalances. To date, this approach appears to be protecting us from some of the more reactionary political responses we are seeing elsewhere.
Because of this, Canada is well positioned to benefit from global instability—especially companies with the right partners that are focused on capitalizing on growing Asian markets. To succeed in this ever-evolving and unsettled environment, staying the course is not always the best strategy. While we cannot predict what will happen in the US (or in any election), all indicators point to Canada remaining a stable political and economic force for the foreseeable future as China and other Asian economies continue to emerge as global powers.
Wazuku Capital, embracing globalization
We have formed Wazuku Capital to facilitate business relationships between Asia and Canada so that companies can capitalize on this opportunity. Wazuku Capital will build upon the pan-Canadian platform and networks Wazuku Advisory Group has built over the past five years, and expand our team to include globe-leading corporate finance professionals and diplomats.
Through Wazuku Capital, we are combining our real-world business experience with deep connectivity into Asian markets to provide our existing and new clients with access to Asian-based capital for their North American business ventures.
While some politicians and some segments of society turn away from globalization, at Wazuku Capital we are choosing to confidently embrace the opportunities that cross-border connections and investment provide.
To find out more about Wazuku Capital and meet its highly experienced team, go to wazukucapital.ca.