We are DEDICATED TO THE ADVANCEMENT OF SUSTAINABLE, WORLD-CLASS BUSINESSES ADDRESSING THE NEEDS OF EMERGING ECONOMIES.
We believe companies that solve real social/economic problems are naturally aligned with host governments, thus 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 high-level 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 balance a wider range of local and jurisdictional variables than in developed markets.
AS FIDUCIARIES, WE ARE COMMITTED TO GENERATing GENUINE ALPHA, ATTRACTIVE RETURNS, AND POSITIVE DIVERSIFICATION BENEFITS (LOW CORRELATION) for OUR INVESTORS.
Since being spawned by development finance institutions approximately 30 years ago, conventional EM private equity ("EMPE") has struggled to generate attractive absolute returns or positive diversification benefits (low correlation to widely followed and accessible indices).
Moreover, seeking to mitigate emerging market risk and volatility through broad (over) diversification carries the danger of replicating the MSCI EM index, which has historically delivered insufficient returns relative to its volatility and does not include some of the most compelling emerging market themes.
By contrast, we believe 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. 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.
ACM’s consistent underwriting standards and focus on risk management are designed to provide an all-weather return profile that relieves investors from having to “market-time” the asset class. Our structured approach also solves some other longstanding problems commonly associated with emerging market private equity, including slow return of capital.
Since inception, converting the fragmented and inefficient emerging market private investment landscape into a relatively new source of alpha for investors has been one of our primary goals. This comes at an auspicious time, given that alpha is becoming harder to find across the alternative asset management landscape, generally.
A VALUE-ORIENTED INVESTMENT PHILOSOPHY IS A CRUCIAL INGREDIENT.
Albright Capital seeks to capitalize on discrete market inefficiencies and pockets of capital shortage rather than following the crowd into popular and overcrowded economic and demographic growth-oriented macro themes, especially at high entry multiples.
The best value opportunities are found through a comprehensive research and origination process, looking for gaps in the market to fill with established business models from other jurisdictions (build vs. buy), and patiently letting the inherent volatility of the landscape provide attractive entry points into established businesses with proven management teams.