We operate in this segment through our EDR and Landmark subsidiaries and our minority investments in Real Capital Analytics (RCA) and BuildeRadius. Real Estate is the largest asset class with over $20 trillion in aggregate capital value in the US alone. Information about real estate properties is opaque and dispersed over a large number of non-standardized sources. We believe that there is a significant and growing need for data sources and analytics to increase the transparency of the global real estate markets.
We operate in this segment through our Hobsons subsidiary. We view the education sector as having extremely attractive characteristics; high growth, fragmented customer and supplier base. The sector where Hobsons participates, k-12 and university admissions & recruitment is a $900m sector in US alone and the school sub-segment is growing particularly fast. We are interested in expanding Hobsons participation in these sectors as well as adjacencies (e.g. course & career planning)
We participate in this segment through our Genscape subsidiary. We believe energy and commodities presents an outstanding information sector opportunity; power information alone is a $400m market, oil & gas another $800m and agricultural information another $700m+. Growth in global population and wealth levels are driving rapidly increasing demand for energy and commodities. The location of the supply of energy and commodities is in most cases not where the demand is located. These aforementioned dynamics make the sector fertile ground for innovative information and analytical solutions.
The markets for structured finance products were at the center of the market upheaval of late 2008/2009. As the markets continue their structural recovery, the need for improved data and analytics on structured products has never been greater. Estimates for new CMBS issuance for 2012 are as high as $50bn vs. $14bn from mid ‘08 to ‘10! (cmbs is focus of Trepp). We are also seeing the return of securitization in other markets (automotive, residential mortgages, credit cards). The market for market for structured finance information in the US is estimated at $500m+.
We are seeking to expand our participation in this space. The tension between rapidly rising resource consumption and environmental sustainability is sure to prove to be one of the next decade’s critical pressure points. It is estimated that food production will need to rise by 70% to feed a global population estimated to reach about 9bn by 2050. Growing demand is on one side of the equation, driven by industry, population, changes in dietary habits and ever rising demands for energy. Agricultural production must expand substantially in a sustainable fashion in order to provide food for a growing world population that will be wealthier and living in urban areas. The imbalance between the demand for and supply of food is expected to grow, and in order to bridge this gap local and global supply chains must be integrated and operate more efficiently. At dmgi we recognize there is a role for enterprise to play in devising solutions. There is potentially an information intensive set of solutions to the challenge of food security and water scarcity. The private sector and market mechanisms thrive on good information, information that could facilitate matching supply and demand in an optimal way and risk mitigation strategies. An area that plays to the strengths of businesses within dmgi.