Emerging market boutique Alquity is targeting a 10-fold increase in revenues and $3bn in assets under management over the next five years after entering a strategic partnership with East Capital Group, and receiving financial backing from co-founder of Aberdeen Asset Management Martin Gilbert as well as the founders of Investible.
In a statement, Alquity said it will cooperate with Luxembourg-based East Capital Group business development and distribution in some European and overseas markets to build both synergies and scale. The companies will companies will also work together on strengthening sustainable investment, impact practices and foster ESG excellence through the creation of a joint ESG and Impact Council.
Over five years, the plan is for Alquity to see revenue growth of 10x and increase AUM to $3bn – it currently stands at around £130m.
East Capital Group has acquired a 10% stake in Alquity.
Furthermore, Alquity has also secured the investment and backing from Gilbert, the former CEO and co-founder of Aberdeen Asset Management, and from the founders of Australian seed stage investor Investible.
Paul Robinson pictured), founder and chairman of Alquity, said: “Megatrends in ESG and impact such as decarbonisation, gender equality and the circular economy, coupled with structural growth and booming demographics in emerging markets will shape the next 10 years towards the Sustainable Development Goals. Investors will no longer accept short term alpha if it compromises long term beta. We all believe that now is the right time to seize this moment to scale through our differentiated offer.”
Brad Crombie, CEO of Alquity, added: “What is critical for our business is the bridge between listed equities and impact. We conceived of this approach ten years ago and now, supported by our partnership with East Capital Group and the backing of the founders of Investible and of Martin Gilbert, we want to start scaling billions of dollars of listed investments towards impact. This will bring benefits to companies and communities, to our clients and our shareholders.”
Alquity reserves 10% of its revenues into its Transforming Lives Foundation, which has impacted over 60,000 people by granting more than $2m in the regions where the company invests, so this too will benefit from the potential increase in scale and revenues. Alquity added with East Capital Group it will work on growing and developing the Foundation.
Albin Rosengren, managing partner of East Capital Group, commented: “We’re proud that Alquity, which is renowned for its high quality ESG and impact work, has chosen to partner with East Capital Group. Our operational excellence, our ESG efforts and especially our achievements in emerging and frontier markets provide an excellent platform for cooperation with Alquity.”
Gilbert explained the reasons for giving his support: “I have known the Alquity team for many years – they are tried and tested. There’s no doubt their expertise on the connection between listed equities, high quality ESG and impact is going to become even more significant over the next ten years – for investors and for the industry.”