Industry Investment Rating - The report does not explicitly provide an investment rating for the industry, but it highlights India's significant economic potential and challenges [2][3][4] Core Viewpoints - India's economic growth is driven by its demographic dividend, urbanization, and infrastructure investments, positioning it as a potential global economic powerhouse [2][4][13] - The services sector is the main contributor to India's GDP growth, while the manufacturing sector faces structural challenges [10][50][51] - India's labor market is characterized by high informal employment, low female participation, and a skills mismatch, which hinder inclusive growth [35][43][44] - Infrastructure development is a key growth catalyst, with significant investments in transportation, energy, and urban infrastructure [30][31][32] Economic Foundations and Growth Catalysts - India's services sector accounts for roughly 50% of its gross value added (GVA), with industries like IT, financial services, and telecommunications driving growth [10][11] - Domestic consumption is a primary driver of India's economy, accounting for 60% of GDP, while exports play a smaller role at 22% of GDP [12] - India's demographic dividend, with a median age of 28 years and a large working-age population, is a key driver of future growth [14][15][16] - Urbanization is transforming India's economic landscape, with urban centers like Mumbai, Delhi, and Bangalore becoming innovation hubs [21][22][23] - The expansion of India's middle class, expected to reach 60% of the population by 2047, is driving consumption across various sectors [26][27][28] Obstacles and Challenges - India's labor market faces structural issues, including high unemployment (8.4%), low female participation (33%), and a dominance of informal employment (88.8%) [35][37][42] - The manufacturing sector's share of GVA has declined to 12.8%, hindered by low R&D investment, regulatory complexity, and infrastructure deficits [51][55][56] - Regional disparities and social inequalities further complicate India's labor market challenges, limiting access to stable employment opportunities [47][48][49] - India's stagnant FDI inflows (0.8% of GDP in 2023) reflect limited integration into global value chains and regulatory inefficiencies [60][61] Strategic Recommendations for Businesses - Companies should engage in strategic workforce planning to address skills mismatches and capitalize on India's demographic dividend [72][73][74] - Adapting to local markets, including consumer preferences and regulatory environments, is crucial for success in India [75] - Operational excellence, including AI-driven transformation and continuous performance improvement, is essential for profitability in the Indian market [76] Conclusion - India has significant potential to become a global manufacturing hub, but it must address challenges related to land, labor, and law to sustain robust growth [65][66][67] - Policy reforms in land acquisition, labor laws, and bureaucratic efficiency are critical for India's industrial development [68][69][70]

Industry Overview - PFAS, known as "forever chemicals," are ubiquitous synthetic chemicals used since the 1940s for their unique properties like water and oil repellency, resistance to extreme conditions, and durability [3] - Approximately 250 out of thousands of PFAS types have commercial significance and are found in a wide range of products, including textiles, food packaging, electronics, and medical devices [3][8] - PFAS are persistent in the environment and have been linked to serious health issues such as cancer, high cholesterol, and liver damage, raising global concerns since the early 2000s [4] Regulatory Landscape - The EU has added three groups of PFAS to its Substances of Very High Concern (SVHC) list between 2019 and 2023, with a proposal to regulate them as a group submitted in January 2023 [7] - Several European countries are pushing for greater transparency and decisive regulatory action, potentially leading to a near-total ban on PFAS in Europe [5][7] - In the US, states like California, New York, and Maine are implementing significant measures, including disclosure requirements and plans for a complete ban on non-essential PFAS by 2030 [13] Legal and Market Challenges - Legal challenges are increasing, with companies like Chemours and 3M facing lawsuits and settlements related to PFAS contamination [11][12] - 3M announced plans to phase out all PFAS production by the end of 2025, impacting over $1 billion in annual revenue [14] - The Investor Initiative on Hazardous Chemicals (IIHC), with over 60 global asset managers, is urging companies to phase out hazardous chemicals, including PFAS [15] Opportunities and Innovations - Growing regulatory pressure is driving innovation, with companies developing PFAS-free alternatives and cleaner business models [16] - Brands like Norrøna and Patagonia have adopted PFAS-free water-repellent technologies, setting new standards for sustainable practices [16] - Research initiatives, such as those by TNO and SERDP, are working on PFAS-free firefighting foams and alternatives for electronics and semiconductors [21] Essential vs Non-Essential Use - Essential use cases, such as medical devices and semiconductors, may receive longer timelines for transitioning away from PFAS, while non-essential uses like consumer goods face stricter deadlines [19][23] - Companies in non-essential PFAS applications, such as IKEA, are already shifting toward alternatives, with over 50% of EU PFAS production tied to non-essential uses like apparel and food packaging [26][27] Strategic Actions for Companies - Companies must assess PFAS exposure in their portfolios, monitor legislation, and invest in alternative materials to mitigate risks and gain competitive advantages [33][34] - Developing a comprehensive PFAS strategy, including product recalls and information sharing, is critical for timely and adequate responses [29][32] - Proactive measures, such as identifying existing technologies and collaborating with research teams, can position companies for success in a PFAS-restricted future [34]

Industry Overview - Digital health technologies, including digital applications, data, and information systems, are transforming healthcare by improving patient experience, operational efficiency, and creating new business models [1] - Regulatory sandboxes are important tools for promoting innovation in highly regulated sectors like digital health, allowing innovators to test new products and services in controlled environments [4] - The use of regulatory sandboxes in digital health is growing globally, with benefits for innovators, patients, governments, and regulators [6] Benefits of Regulatory Sandboxes - Innovators gain access to funding, markets, and regulatory guidance, reducing risks and increasing confidence in their products [8] - Patients benefit from early access to innovative, regulated products at potentially lower costs, with increased transparency and trust [8] - Governments and regulators can better understand the risks and benefits of new technologies, improve regulations, and promote innovation [8] Key Characteristics of Regulatory Sandboxes - Regulatory sandboxes are time-bound, with specific focus areas and regulatory waivers within legal limits [10] - They aim to develop evidence on the effects of innovations and provide insights into future regulation [10] - The AAA model of regulation (Advisory, Adaptive, Anticipatory) is used to characterize different objectives of regulatory sandboxes [12] Global Implementation of Regulatory Sandboxes - The UK has been a pioneer in using regulatory sandboxes across multiple sectors, including healthcare [21] - Singapore ran a regulatory sandbox for telemedicine and mobile medicine from 2018 to 2021 [21] - Malaysia's National Technology and Innovation Sandbox has supported 26% of approved applications in the medical and healthcare sectors [21] - India's National Digital Health Mission Sandbox helps integrate innovations into the national digital health ecosystem [21] Steps to Create a Regulatory Sandbox - Define the leadership model, typically involving the Ministry of Health and other relevant ministries [27] - Identify the problems to be addressed and the relevant emerging technologies [30] - Conduct regulatory mapping to identify applicable laws, regulations, norms, and standards [31] - Identify entities involved in monitoring and evaluating the sandbox, including data protection agencies and health regulators [32] - Build capacity and provide training for all entities involved in the sandbox [38] - Establish working groups to coordinate the design, implementation, and monitoring of the sandbox [40] - Define a risk model to identify possible effects and establish contingency plans [41] - Set eligibility and selection criteria for innovators, focusing on novelty, development stage, and regulatory interest [42] - Design the sandbox with specific objectives, including duration, admission windows, and exit options [45] - Publish plans for public consultation before launching the sandbox [52] - Launch and implement the sandbox, allowing innovators to submit applications [53] - Monitor, evaluate, and learn from the sandbox, publishing exit and final reports [58] Key Success Factors and Challenges - Regulatory sandboxes require significant resources, ranging from $25,000 to $1 million [68] - A well-functioning sandbox needs to meet existing market demand and have a mature digital health market [70] - Challenges include predicting potential risks, resource intensity, cross-sectoral innovations, and limited evidence of effectiveness [77] Design Elements of Regulatory Sandboxes - Eligibility: Defines who can participate in the sandbox [47] - Governance: Defines the internal operating structure and roles [47] - Timing: Includes duration of admission windows and testing periods [47] - Test restrictions: Limits the scope, scale, and conduct of the sandbox test [47] - Exit options: Includes individual test outcomes and program-level KPIs [47]

Industry Overview - The report focuses on the education sector, specifically primary education in low- and middle-income countries (LMICs), analyzing the relationship between teaching quality and student learning outcomes [8][12] - The study leverages data from the World Bank's Global Education Policy Dashboard (GEPD), which covers 13 education systems across LMICs, including countries like Ethiopia, Pakistan, Peru, and Sierra Leone [33][34] - The report highlights the persistent learning crisis in LMICs, with 57% of children in these countries unable to read and understand a simple text by age 10, and even higher rates in Sub-Saharan Africa (86%) [12][13] Key Findings on Teaching and Learning - Teacher pedagogical skills, as measured by the Teach Primary tool, are positively correlated with student learning outcomes, particularly in literacy [8][21] - Teachers with better content knowledge, especially in mathematics, significantly improve student performance, with a 1-standard-deviation increase in teacher content knowledge leading to a 0.2 standard deviation increase in student learning [24][25] - Teaching practices that foster student engagement, such as play-based and child-centered approaches, are highly predictive of better literacy outcomes [8][62] Teacher Support and Quality - Teachers in LMICs often lack adequate support, with only 33% of teachers having a bachelor's degree and 23% holding a master's degree [39] - Teacher absence rates are high, with students receiving only about half of the scheduled teaching time due to teacher absenteeism, significantly impacting learning outcomes [28] - Effective teacher support systems, such as practical training, mentoring, and feedback, are crucial for improving pedagogical practices and student learning [14][71] Policy Implications - The report emphasizes the importance of structured pedagogy and practical teacher training programs to improve teaching quality and student learning outcomes [21][71] - Instructional leadership, including classroom observations and feedback, is critical for identifying and addressing teaching challenges, yet only 58% of teachers report discussing observation results and 54% receive feedback [73] - Policies should focus on improving teacher recruitment standards, providing in-service training, and ensuring that teachers have access to necessary resources and support [75][76] Data and Methodology - The GEPD uses a combination of school surveys, teacher assessments, and classroom observations to provide a holistic view of the education system [29][30] - The study employs machine learning models, including Conditional Inference Forest (CIF) and Random Forest (RF), to identify key variables predictive of student learning outcomes [85][87] - The PLAY tool, developed to measure student engagement in learning, was applied in three countries (Ethiopia, Peru, and Sierra Leone) to assess the impact of playful learning practices on student outcomes [63][64]

Industry Investment Rating - The report does not explicitly provide an investment rating for the industry [1][2][3] Core Viewpoints - Social registries are fundamental tools for social protection, enabling efficient resource targeting and access to services for vulnerable populations [14] - Over the past two decades, social registries in Latin America and the Caribbean (LAC) have significantly expanded in coverage, interoperability, and usage, with some countries like Chile, Colombia, and Costa Rica achieving over 80% coverage [15] - Social registries play a critical role in the delivery chain of social protection programs, including identifying eligible populations, tracking social investments, and responding to emergencies [16][17] - Despite advancements, LAC social registries face challenges such as strengthening legal frameworks, improving data quality, and enhancing interoperability [18] Summary by Sections Executive Summary - Social registries serve as inclusion systems, allowing citizens to access social programs and consolidating household data for public policy decision-making [14] - The coverage of social registries has grown significantly, with some countries reaching over 80% coverage [15] - Social registries are increasingly used beyond cash transfers, supporting programs in education, health, and economic inclusion [16][17] - Challenges include legal and institutional strengthening, data quality improvement, and enhancing interoperability [18] Introduction - The World Bank has been working to strengthen social registries in LAC, aiming to reduce knowledge gaps and generate recommendations for improving social policies [20] - The technical note draws on previous World Bank publications and surveys conducted with officials from 17 countries [21][22] Role of Social Registries in Social Policy - Social registries are essential for identifying individuals in poverty and vulnerability, enabling their participation in social protection programs [27] - They support the dissemination, admission, and registration of households, facilitating the evaluation of socioeconomic conditions [35] - Social registries aim to reduce operational complexity by consolidating data, leading to cost and time savings [36] - Information is the primary input and output of social registries, with data collected through surveys, administrative records, and digital interfaces [37][38] Evolution of Social Registries in LAC - Social registries in LAC have evolved over the past four decades, with significant growth in the last two decades [48][49] - Countries like Colombia have achieved 100% population coverage through innovations in interoperability and data exchange [51] - The use of social registries has expanded beyond cash transfers to include education, health, and subnational government programs [63] Role of Social Registries During the COVID-19 Pandemic - Social registries played a crucial role during the COVID-19 pandemic, enabling rapid responses to citizen needs [68] - Countries implemented innovations such as cross-referencing with new data sources and using machine learning for household classification [72] - Interoperability with administrative data was a key strategy for expanding social registries during the pandemic [73] Social Registries in LAC Today - Social registries are assessed based on five dimensions: institutional arrangements, data collection and updating, socioeconomic classification, information systems, and performance measures [80][81] - Institutional arrangements vary by country, with most registries managed by ministries of social development or planning [86][87] - Data collection methods are evolving towards hybrid models, combining self-declaration with administrative data [96][97] - Interoperability is a key focus, with countries like Chile and Brazil leading in data exchange and integration [162][163] Challenges and Recommendations for LAC Social Registries - Strengthening legal frameworks and institutional support is crucial for the sustainability of social registries [194] - Efficient and sustainable mechanisms for data updating are needed to ensure accurate targeting of social programs [197] - Interoperability with other systems, such as disaster risk management, can enhance the effectiveness of social registries [202][203] - Expanding coverage in high-poverty areas and improving communication with citizens are essential for the future of social registries [205][206] References - The report references various studies and publications from the World Bank and other institutions, providing a comprehensive background on social registries in LAC [211][212]

Industry Overview - The Somali private sector accounts for an estimated 95% of total jobs created, with private businesses providing almost all products and services, including traditionally state-delivered services like energy, ICT connectivity, and water [19] - The manufacturing sector represents only 15% of established businesses, generating about 0.8% of total jobs, and is less productive compared to other sectors [19] - Livestock, fishery, and agricultural goods dominate the productive sector, accounting for 26% of employment and 73% of exports, but these sectors are underdeveloped and vulnerable to climate shocks [19][106] Private Sector Challenges - The private sector is concentrated in nontradable sectors, with 69% of rural employment and over 90% of urban employment in retail, petty trading, and other nontradable services [19] - A few large conglomerates dominate key sectors such as finance, ICT, transportation, tourism, energy, real estate, and commerce, leveraging their influence to distort and capture markets [20] - Most firms are small, informal, and necessity-driven, with SMEs accounting for only 6% of established businesses and 2.4% of total employment, leading to low productivity and job generation [21] Enabling Sectors - Access to reliable electricity is low and inequitable, with Somalia ranking in the upper 5% globally for power cost and 15% for power expenditure as a share of gross national income per household [28] - The financial sector has grown significantly, with total assets and customer deposits at commercial banks more than quadrupling between 2018 and 2023, but access to finance for MSMEs remains a key challenge [31][33] - Digital connectivity has improved, with mobile network services becoming more affordable, but broadband penetration and use of bandwidth remain low compared to regional peers [36] Recommendations - Establish legitimate, effective, and equitable formal institutional and regulatory frameworks to enable economic transformation and increase efficiency-seeking FDI [43] - Promote private participation in key enabling sectors such as energy, transport, and education, and improve public stewardship to address service delivery gaps [45] - Improve growth and productivity of selected value chains like livestock, crops, and fisheries to deliver short- to medium-term inclusive dividends and create jobs [45]

Industry Investment Rating - The report does not explicitly provide an investment rating for the industry, but it highlights the importance of transitioning to a circular economy (CE) in Türkiye, which presents both challenges and opportunities for industries [18][19][20] Core Report Insights - The transition to a circular economy in Türkiye is driven by both environmental sustainability goals and the need to align with the EU's tightening environmental policies, particularly under the EU-Türkiye Customs Union [19][20] - Türkiye's material demand is expected to increase despite improvements in material intensity, with non-metallic minerals dominating the material mix [35][36] - Circular economy policies can support Türkiye's climate mitigation objectives, potentially reducing CO2 emissions by over 7% in 2030 on top of the Nationally Determined Contribution (NDC) scenario [38][39] - A combination of demand-side and supply-side policies is necessary to achieve circular economy targets, with demand-side measures more effective in reducing non-metallic mineral use and supply-side measures better suited for increasing metal ore recycling [43][44] Macroeconomic Impacts of the CE Transition in Türkiye - Türkiye's economy is projected to see an absolute increase in the use of all material inputs, driven by GDP and population growth, with material intensity declining for all commodities except metal ores [36] - The economic dividend of supporting the CE transition can be reaped by addressing Türkiye's existing skills gap, particularly in high-skilled labor [49] - The costs of implementing CE policies are relatively moderate, with real GDP decreasing by about 1.6% in the combined scenario, but this does not account for co-benefits such as reduced air pollution and improved ecosystem services [47] Positioning Turkish Industry in Circular Global Value Chains - Nearly one-fifth of Turkish firms have adopted resource-efficient production technologies, with higher adoption rates in the garments and textiles sectors compared to fabricated metal products and machinery sectors [55] - Two possible CE futures for Türkiye are outlined: a 'light' transition focusing on material efficiency and recycling, and an 'ambitious' transition involving comprehensive product redesign and higher value-added goods [62] - Factors enabling CE readiness include effective traceability, digital monitoring systems, access to recycled inputs, and technological upgrades [66][67] Prioritizing Industries for Building a Competitive Circular Economy in Türkiye - Strong connections between industries are essential for a successful circular economy, with weak links currently observed between high-potential circular industries and their supporting sectors [80][82] - The analysis identifies six priority value chains for Türkiye's CE transition: iron and steel, aluminum, cement, plastics, fertilizers, and chemicals, with 80 core industries and 75 supporting industries identified [84] - Policies for a competitive CE transition include boosting competition in key industries, strengthening primary and manufacturing industries, and fostering collaboration within the tertiary sector [91][93] Next Steps for Türkiye's CE Transition - Türkiye should focus on enhancing the competitiveness of core industries, fostering the growth of upstream and downstream industries, and promoting investments in key industries that support circularity [96][99][100] - Pilot regulations within vital sectors with strong interrelations are recommended, along with broadening the use of network analysis to bolster monitoring, reporting, and verification (MRV) objectives [106]

Industry Overview - The report focuses on the future demand for water in France up to 2050, analyzing water withdrawals and consumption across various sectors including agriculture, energy, industry, residential, and navigation canals [15][16][17] - Three scenarios are considered: a "trend" scenario, a "public policies" scenario, and a "rupture" scenario, each with different implications for water usage and consumption [16][17] - The study is conducted at the scale of 40 watersheds in metropolitan France, providing a detailed territorial perspective on water demand [42][44] Water Demand by Sector Agriculture - Irrigation is the largest consumer of water, with significant variations depending on climatic conditions and crop types [130][131][132] - In 2020, water withdrawals for irrigation amounted to 3,540 million m³, with consumption at 3,040 million m³, primarily concentrated during spring and summer months [161] - The trend scenario projects a 50% increase in irrigated agricultural areas by 2050, while the rupture scenario limits this growth to 12% [82][106] Energy - The energy sector, particularly nuclear power plants, accounts for significant water withdrawals, with 13,800 million m³ withdrawn in 2020, but only 500 million m³ consumed [180] - Nuclear plants with open cooling circuits withdraw significantly more water than those with closed circuits, with some plants withdrawing over 200 m³ per MWh produced [178][179] - The public policies scenario envisions a shift towards renewable energy and modernization of cooling systems, reducing water withdrawals [97] Industry and Tertiary - Industrial and tertiary sectors withdrew water primarily for cooling and production processes, with industrial water demand at 441 m³ per employee in 2020 [189] - The public policies scenario includes measures to reduce water usage in industries, such as improved water reuse and efficiency, aiming for a 30% reduction in water withdrawals in the agro-food sector [98] - Data centers, particularly those using liquid cooling, are expected to increase water demand, with global water withdrawals by major tech companies growing significantly [195] Residential - Residential water usage remains stable in the trend scenario, with slight population growth until 2040 followed by a decline [87] - The rupture scenario introduces significant water-saving measures, including decentralized water reuse and improved efficiency, reducing per capita water withdrawals [111] Navigation Canals - The Seine-Nord canal, under construction, is expected to be operational by 2030, with modernization efforts reducing water withdrawals for canal operations [104][112] Climate Projections and Water Demand - Two climate projections, "yellow" (moderate changes) and "violet" (severe changes), are used to model future water demand under different climatic conditions [70][71] - Under the violet projection, water withdrawals remain stable in the trend scenario but decrease in the public policies and rupture scenarios, with consumption doubling in the trend scenario by 2050 [20][21] - The yellow projection shows a decrease in water withdrawals across all scenarios, with the rupture scenario achieving a 37% reduction in consumption by 2050 [22][23] Key Findings - Irrigation will dominate water withdrawals, especially during dry periods, with significant implications for water resources and ecosystems [32] - The rupture scenario is the only one that manages to keep water consumption close to 2020 levels by 2050, through regulated irrigation growth and agroecological practices [24] - The study highlights the need for detailed local-scale work and stakeholder engagement to address future water demand challenges [17][37]

Industry Investment Rating - Emerging market (EM) corporate debt offers compelling opportunities due to its diversity and potential for return dispersion [2][6] Core Themes Impacting EM Corporate Debt - Negative net supply, U S policies, crude oil, interest rate trajectory, and improved default rates are key themes for 2025 [6] EM Corporate Debt Performance - In 2024, EM corporate credit performance was strong with index returns surpassing 7 6%, outperforming both EM and developed market (DM) credit in most rating categories except CCCs [5] Negative Net Supply - EM corporate debt market cap grew from $300 billion to $1 4 trillion ($2 2 trillion including quasi-corporates) from 2010 to its peak, driven by Asia, particularly China [7] - Net financing turned negative in 2022 and 2023 due to a 50% drop in gross issuance from its peak, though issuance stabilized in 2024 and is expected to remain stable in 2025 [8][14] U S Policies - The Trump 2 0 administration's potential trade policies, particularly tariffs on China, and a softer outlook for EM currencies are key risks for EM corporates [15] - Greater China issuers account for 15% of the J P Morgan CEMBI Broad Diversified index, with 74% being investment-grade (IG) rated [16][17] Crude Oil - Global oil demand growth for 2025 is forecast at 1 million barrels per day, below historical averages, with China and the U S being the primary demand drivers [35][36] - OPEC's output constraints and geopolitical factors, such as conflicts in the Middle East and Ukraine, add volatility to oil markets [38][39] Interest Rates and Financing Costs - Higher interest rates have increased average coupons by over 40 basis points (bps) since 2021, with lower-rated issuers more affected by rising financing costs [46][52] - The index maturity profile is stable, with 5% maturing in 2025 and 10-15% per year over the next five years, in line with historical averages [53] Default Rates - The long-term default rate for the HY component of the EM corporate universe is 3 6%, with defaults peaking during COVID-related stress and Chinese real estate sector challenges [60][62] - Default rates are expected to remain contained in 2025, supported by issuers' ability to address near-term maturities and expanded financing options [63][64]

Industry Investment Rating - The report highlights a strong growth opportunity in the German heating market, driven by decarbonization and the shift towards heat pumps, indicating a positive outlook for the sector [3][11][21] Core Viewpoints - Decarbonization is driving a significant shift in the German heating market, with heat pumps expected to replace fossil fuel-based heating systems, particularly gas and oil boilers [3][5][6] - The transition to low-emission alternatives is accelerated by stricter emissions controls, government incentives, and the economic advantages of heat pumps [6][10][12] - Heat contracting is emerging as a key business model, offering opportunities for contractors, landlords, and tenants by reducing upfront costs and providing long-term service solutions [19][20][25] Heating Technology Overview - Gas and oil boilers, while traditionally dominant, are being phased out due to emissions regulations and the push for renewable energy sources [5][6][7] - Heat pumps are becoming the preferred technology for new installations, with a forecasted 23% increase in installations through 2034 [3][10][15] - Other technologies like district heating, solar thermal, and geothermal also offer benefits but face limitations such as space requirements and installation costs [8] Market Opportunities - The German heating market presents a massive commercial opportunity, with an estimated 2.3 million buildings requiring new heating systems, creating a potential market of $184.5 billion (€168 billion) for heat pump installations [11] - Heat pumps are expected to become the cheapest heating alternative in Germany, with a 22% lower total cost of ownership compared to gas boilers [12][14] - The expansion of the heat pump market will drive economies of scale, reducing purchase costs from $1,098/kW to $830/kW between 2023 and 2034 [15] Heat Contracting Model - Heat contracting removes the need for landlords to invest in heating assets, offering a service-based model that benefits contractors, tenants, and landlords [19][20][25] - Contractors gain long-term customers and opportunities to upsell services, while tenants receive modern heating solutions and landlords avoid large upfront investments [20][25] - The heat contracting model is expected to grow significantly as the market transitions to heat pumps, requiring greater upfront investment and operational expertise [21]