WE ARE DEDICATED TO THE ADVANCEMENT OF SUSTAINABLE, WORLD-CLASS GLOBAL BUSINESSES ADDRESSING THE NEEDS OF LOCAL POPULATIONS/HOST GOVERNMENTS.
We believe companies that solve real social/economic problems improve human living conditions. As such, they are naturally aligned with host governments, minimizing a source of political risk frequently encountered by emerging market private investors.
Moreover, principled and pragmatic integration of environmental, social, and governance (ESG) factors and sustainable development outcomes increases upside and reduces downside by further aligning interests with local stakeholders.
We believe these objectives are best achieved by working cooperatively with management, other shareholders, and all company stakeholders. Sole control is not our automatic preference in emerging markets, given the need to process and balance a wider range of local and jurisdictional variables than in developed markets. A consensus- driven approach among a control consortium comprising investors with shared values and objectives can be preferable.
AS FIDUCIARIES, WE ARE COMMITTED TO VALUE INVESTING, SEEKING GENUINE ALPHA, i.e., ATTRACTIVE RETURNS, AND POSITIVE DIVERSIFICATION BENEFITS (LOW CORRELATION).
We seek to capitalize on discrete market inefficiencies and pockets of capital shortage rather than following the crowd into popular and potentially overcrowded growth-oriented macro themes, especially at high entry multiples.
Our disciplined insistence on value, consistent underwriting standards and focused risk management delivers a steady uncorrelated return profile that relieves our investors from having to “market-time” the asset class, which is notoriously difficult. Compounding attractive returns from a highly selective “bottom up” approach generally outperforms “top down” market timing.
One of our primary goals since inception has been to convert the fragmented and inefficient emerging market private investment landscape into a relatively new source of alpha for investors. We seek for each deal to deliver an asymmetric return profile, with a worst-case return of capital and a best-case, equity-level multiple of original capital. Each deal therefore is designed to be inherently uncorrelated to any index, and the whole portfolio naturally follows suit.
The conventional EM private equity ("EMPE") industry, spawned by development finance institutions approximately 30 years ago, has struggled to generate attractive absolute returns or positive diversification benefits (low correlation to widely followed and accessible indices).
Moreover, many investors seek to mitigate emerging market risk through broad (over) diversification. This approach carries the danger of replicating the volatility of the MSCI EM index, which few investors can withstand. The MSCI EM has historically delivered insufficient returns relative to its volatility and does not include some of the most compelling emerging market themes.
By contrast, Albright Capital believes that a highly selective approach from a large potential universe of opportunities, executed by an experienced, interdisciplinary investment team with the necessary deal structuring tools and expertise at its disposal, generally yields superior results.