AROS CAPITAL ANNOUNCES GLOBAL ALTRUISTIC INVESTMENT FUND
- High impact giving combined with equity-like returns -
Aros Capital Partners, an Anglo Danish investment manager with a strong philanthropic ethos, announces the launch in Q2 2010 of Aros Altru, a UK-managed global altruistic opportunities fund, which will challenge the notion that social benefits are a trade off with commercial returns, by offering equity-like returns to its investors.
The Fund, which will be a closed-end private equity vehicle, will also differ from others in the market as the businesses in which it invests will not just be “social enterprises” but those – that with the right support – have the potential to make a sustained social impact in their communities.
It will particularly target those companies that fall under the radar due to either size or product stage. Some of these companies, labelled “The Missing Middle”, are unable to finance their own growth yet too small to attract capital from traditional sources. As a group, many are micro or small-caps, unlikely to have sufficient market awareness to be considered an asset class worthy of institutional investment. Or, due to their significant social value, such entities have been ring-fenced as only suitable for grant funding by governments, charities and aid organisations.
In developed countries Altru’s investment focus will be on technology, community, renewable energy, transportation, housing, culture and sports. Whilst in developing countries the focus will be on building, infrastructure, health, water, education, housing and telecommunications.
Altru will offer more than just capital to these businesses. Investments will have a structured package of support; helping them to hone their business skills, leverage relationships, scale their operations and ultimately create value for themselves and their investors.
KEY POINTS:
• Highly experienced team: includes Nicolai Borcher Hansen, Aros Capital’s Chief Investment Officer, Managing Partner Christian Falster and Analyst Tom Muchiri Kabuga, who has a global track record in entrepreneurial ventures and in-depth cross cultural business awareness
• Institutional structure: Altru is a business - not a charity - with strong corporate governance, an inbuilt system of checks and balances and rigorous performance monitoring systems
• Financial and social returns: target return of 8% IRR combined with measurable social impacts
• Giving that works “harder” than charity- the impact of such giving is designed to long outlast initial investment, as businesses that are chosen will both grow and replenish investment capital
• Distinguished Altru Network: council of seasoned experts including collaboration with the Skoll Centre at the University of Oxford, to help form strategic relationships and mentor the portfolio companies
• Strong pipeline of investments: the team sources investment opportunities across sectors and geographies
• Risk management: strong legal framework to protect investors and active involvement in companies, including direct monitoring by Aros team
• Investor engagement: regular reports and opportunity for involvement with portfolio companies
FUND HIGHLIGHTS:
- Target size - GBP 10 million
- Minimum investment - GBP 70,000
- Target returns - 8% IRR
- Instruments - Public and private, equity and debt instruments
- Target investments - The Fund will consider investment proposals from early-stage to mid-sized more established growth companies
- Positions Portfolio - target 8-10 investments
- Fees - 2.5% p.a. and 10% performance fee
- Manager - Aros Capital Partners LLP, FSA regulated and authorised
- Custodian - UBS
- Operational Support - Bedrock RealTime
- Auditor - Ernst & Young
- Legal - Eversheds
- Close of Book Building - April 15th 2010
Nicolai Borcher Hansen, CIO of Aros Capital Partners comments:
“With the collapse of financial markets, the idea that society benefits from pure profit is starting to lose its grip. Tentatively, another era is taking shape: where the social impact of our business and investments is taken into account and where there are longer horizons for returns on capital.
“Aros Altru has been designed and structured to convince investors that doing good and making commercial returns need not be mutually exclusive. We hope that by delivering strong financial returns, we will attract new investors to this area and thus start a virtuous circle where all will benefit.
“Our experience and entrepreneurial skills will enable us to select those businesses that will generate financial returns alongside tangible social benefits. However, it is the rigour of our monitoring, management and structure that will ensure delivery of these benefits.”
-ENDS-
For further comment or editorial information, please contact:
Christian Falster, Managing Partner at Aros Capital Partners
M: 07798588200, E: christian@aroscap.com
Bernadette Motion, PR Consultant
M 07702 620284, E: bernadette.motion@btinternet.com
AROS CAPITAL PARTNERS
About AROS Capital Partners LLP
AROS Capital Partners LLP is an independent investment management boutique, offering alternative investment management products. Its strategies and products are based on a proprietary and dynamic asset allocation model and risk management process.
The Anglo-Danish company was formed at the beginning of 2009 by four partners – part of the former investment management team and advisory team at Formuepleje, Denmark’s largest independently-owned asset manager, plus a former senior relationship manager at FBR Capital Markets International.
Headquartered in London, it also has offices in Denmark and Malta. AROS stands out amongst its peers in that it has set up a strong system of checks and balances to protect investors and their portfolio value and a strong and multi-layered corporate governance structure to further reassure its clients.