Building Bridges in Vienna | Connecting Capital Minds

Under the title "Building Bridges in Vienna – Connecting Capital Minds", the forum explored the latest topics of interest to institutional investors in Europe.

In his welcome address, Hannes Cizek, CEO of Raiffeisen Capital Management, emphasised Vienna's historic role as a bridge between East and West and the importance of emerging markets, which have become indispensable for international investors, particularly in terms of return opportunities and diversification, as well as the mega-topic of infrastructure as an addition to any portfolio. The complex geopolitical challenges are leading to considerable uncertainty – exactly the right topic for Alexander Schallenberg.

Pragmatism instead of wishful thinking

Guest speaker Alexander Schallenberg, former Austrian Chancellor and Foreign Minister, analysed Europe's role in a changing global order in his presentation. Europe must become more self-confident, independent, realistic and pragmatic. He made it clear that the separation of economics and politics is illusory today, citing examples such as energy policy, China's industrial policy, US tariffs and conflicts in the Middle East, which illustrate the intertwining of business and politics. Europe must combine its economic strength with "soft power" and expand global partnerships without being arrogant. Schallenberg emphasised that pragmatism rather than wishful thinking is needed, as the world is not black and white but full of shades of grey.

Schallenberg praised the increase in defence and research investment but warned against a loss of innovative strength without corresponding capital market developments. In addition to economic and military strength, Europe needs mental strength above all else. The former foreign minister criticised Europe for too often seeing itself as a victim, while authoritarian powers such as Russia and China deliberately sowed doubt. He reminded his audience that, despite all its crises, Europe is the most liveable continent in the world and that many people aspire to come to Europe.

Schallenberg concluded by stating that the last 30 years had been an exception, during which Europe had had a "break from history". Now, he said, Europe was back in an uncertain future. He emphasised that democracy was never easy, and that trust was the most important currency.

Private markets: Important to be in the game

The subsequent panel discussion on the topic of private markets featured Ravi Parekh, Managing Director of GCM Grosvenor, Jaromír Sladkovský, CEO of Raiffeisen investiční společnost, and Johannes Burkhardt, Managing Director of Boston Consulting Group.

Klemens Breuer, Senior Advisor at Raiffeisen Capital Management, who moderated the discussion, asked the experts what makes private markets attractive to investors and immediately heard the keywords cash flows, diversification and alpha from Jaromír Sladkovský.

According to Burkhardt, it is important to consider the investor's background when developing the right strategy for private markets, i.e. whether they are an insurance company or a family office, for example. The asset class is very mature and offers a wide range of opportunities.

Ravi Parekh also emphasised the diverse opportunities offered by private market investments, saying that it is important to be in the game.

Positive trends support the capital market

The challenges facing capital markets in light of major global crises and Trump's tariff policy were the subject of an analysis by Karin Kunrath, Chief Investment Officer at Raiffeisen Capital Management.

In her presentation, she emphasised the positive performance of capital markets so far this year. Global equities had recorded price gains even in the traditionally difficult months of August and September, including on a euro basis. Higher-risk bond categories had also benefited from spread narrowing and performed positively. Economic data and leading indicators for the economy were significantly better than expected in the spring. Global purchasing managers' indices had recovered and signalled confidence among companies, according to Kunrath. Global economic growth is forecast to return to just under three per cent in 2025. All in all, these are very positive trends that are supporting developments on the capital market, especially on the stock markets.

Strategic considerations during round-table discussions and a dignified conclusion at the Palais Coburg rounded off the event.