The Osiris Asia Impact Fund
The Osiris Group Profile
The Osiris Group is a boutique private equity firm scaling innovation in frontier markets. We are the financing engine for profitable disruption - intentionally building systems of the future, rather than the past. A top priority for the firm is allocating capital into investments leapfrogging long-term development, prosperity and growth. Pioneering impact investing in Asia, the Group integrates public policy, entrepreneurship and operational leadership, creating sovereign alpha while best capturing risk-adjusted growth returns.
Our multi-disciplinary process combines three philosophies: regional value investing, development economics and the “investment wrapper” of early stage growth equity. Low correlations and scalable alpha allow IRRs to exceed ALM benchmarks while capturing an additional source of return – sovereign alpha. Disruptive innovation in rural economies improves the domestic transmission mechanism while reducing the cost of capital. A precursor to a virtuous cycle where the investment process is not only financially rewarding, but truly transformational.
Our Frontier Market Identity
Understanding that making money and making a difference is not only possible– it’s the most seductive proposition in finance today
Our approach is simple and direct, you can capture risk adjusted returns while simultaneously making a difference in rural lives. The solution lies in the proper development of the private sector, when combined with government policy - builds the core foundation for successful private equity growth investments. In a globalized world, frontier markets are the next area where impact, scale and social transformation can be realized. Our core proposition is the wealth of nations is driven by productive knowledge. Individuals are limited with what they know and use in production, so the only way society can hold more knowledge is by distributing different chunks to different people. To use this knowledge, these chunks are re-aggregated connecting people through organizations and markets. The ability to create an “ecosystem” connecting inclusive government institutions, civil society and entrepreneurs to the global financial architecture is the foundation for self-sustaining growth. But this is only the first step step; integrated measurement of outcomes is another cornerstone of our investment process. Monitoring disruptive outcomes scaling development, prosperity and growth monetizes execution while transforming lives. The conclusion is optimistic, by building an ecosystem improving local capital formation, skill-set transfer and job creation, the “seeds of development” blossom, delivering transformational growth, shared prosperity and superior risk-adjusted returns –what we call “sovereign alpha.”
Frontier Asia Opportunity
Government enabled framework equally fair to local and foreign investors supporting
capital formation, job creation and productivity creates alpha opportunity
Bangladesh, Pakistan, Myanmar, Vietnam and Sri Lanka currently share the same core ingredients all successful EM economies faced 10 years ago: highly entrepreneurial low wage population, declining inflation, diligent fiscal and monetary policy and currently at the beginning of a credit creation cycle. Important macro tailwinds with strong endogenous growth are creating secular investment opportunities.
· Access fast growing region globally with 160 million people in BGD and 380 million in Frontier Asia
· Average age 23-26, capturing strong demographic window
· Crossroads of major consumer growth areas of India, China and ASEAN
· Access to innovative “SME moats” disrupting nonconsumption transforming rural non-consumers into consumers
· Solid 6% CAGR for the past decade, growing industrial base with increasing regional integration and productivity.
In the most recent World Bank Ease of Doing Business Study, Frontier Asia ranked ahead of Indonesia, Russia, Brazil, and Philippines while ranked 20th for investor protection. Region has improving 5-year Heritage Economic Freedom Index score change with rule of law, investment freedoms and better integration. Strong anchored growth in India is having positive ripple effects supporting surrounding Frontier Asia.
· Providing growth capital to entrepreneurs affecting hearts and minds, building community resilience and employment
· Un-crowded rural innovation investments with better valuation and IRR capture
· Low correlations with developed markets, China, India and other EM markets
· Access to consumer secular growth sectors with geostrategic importance of region with AIIB, India LEP, China OROB
· Pipeline of compelling hard to access moat investments scaling disruptive innovation with little competition.
Capitalizing on first mover advantage and difficulty accessing high-quality deals; our ecosystem around government, civil society and entrepreneurs is paramount