Fund management model will ‘fundamentally change’ social investment

Innovators and investors: Alquity Chair Paul Robinson, left, and CEO Paul Freer

'If we want a fairer world we have to give everybody a chance to win'

 

Alquity chair Paul Robinson

A new type of investment fund manager was launched today that will act as a social enterprise donating profits from its management fees to the One Foundation.

Alquity Investment Management will donate a minimum of 25 per cent of its revenue to the One Foundation, which will work with microfinance specialists Opportunity International to invest in African micro-businesses.

Alquity itself will also be investing in African businesses - focusing on those that can deliver high financial returns while at the same time paying close attention to environmental, social and corporate governance factors.

Speaking at the launch at Africa House, Alquity chair Paul Robinson said this new approach created a 'virtuous circle'.

Robinson, who is also a trustee for the One Foundation, said money donated by Alquity to microfinance meant more consumers and stronger markets in the developing world, which equals greater returns for Alquity investors, which in turn equals more money donated from Alquity to microfinance.

Foundation founder Duncan Goose called the model 'f***ing amazing'.

He said: 'I think this is the next generation of investment funds and I'm absolutely ecstatic that we're part of that.

'I genuinely believe this will fundamentally change the way people start to invest.'

Social investment expert Mark Campanale, who will be an independent member of the Alquity advisory board, said the fund was important because it would be tackling environmental, social and governance issues by actively engaging with the companies it invests in and raising the consciousness of the investor community.

'This combined with an approach that shares rewards by direct social investment [in microfinance] is a very interesting hybrid.'

Alquity CEO Paul Freer said he couldn't see a reason for investors thinking of investing in Africa not to do it through their approach.

'You get the same returns but you're making jobs at the same time,' he said.

Through its microfinance donations Alquity hopes to create 100,000 jobs in Africa by 2012 and then 100,000 annually after that.

In making the case for Alquity's approach Robinson said: 'In the next couple of months we will see the kick off of the world cup in South Africa and we will hear a lot about fair play. I don't think anybody would want a team to come to the pitch eight-nil down and with no shoes.

'If we want a fairer world we have to give everybody a chance to win.'

Alquity was launched by the former UK minister for Africa, Asia and the UN Lord Malloch-Brown, who stressed the importance of private capital for developing countries.

Alquity's first fund should be launched in the next couple of months.

http://www.socialenterpriselive.com/section/news/fund-management-model-will-%E2%80%98fundamentally-change%E2%80%99-social-investment?utm_source=LIVEWIRE&utm_medium=EMAIL&utm_content=STORY1&utm_campaign=SELIVE_LIVEWIRE_FEB25_10

Posted via web from socialbizcoach's posterous