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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.

ENDOGENEOUS GROWTH

·         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.

OPPORTUNITY

·         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.

Impact Framework 

Capitalizing on first mover advantage and difficulty accessing high-quality deals; our ecosystem around government, civil society and entrepreneurs is paramount

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Sourcing & Scale

Frontier PE alpha is driven by innovation, margins, growth and multiple expansion
scaling community resilience and sovereign alpha

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Management Team 

Significant local presence with strong local operating partners allowing structuring depth, deal execution, operating expertise and alpha capture

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Our Value Proposition

Private equity is a local business and being the most experienced local player is a core differentiator. We have our own network for sourcing transactions, understand the quirks in due diligence and operational understanding of running local and international businesses. Our overseas operational relationships help connect local investees with overseas partners driving top line growth, efficiency and supply chain networks.  We understand markets and know what drives domestic returns. We offer help and guidance as much as money and this allows us to be a true development partner. Our global relationships help incorporate technical knowledge creating a partnership bond that enforces shareholders’ agreement independent of legal channels.

We are unequivocal: returns and impact are highly correlated. Investing and helping build companies adhering to high environmental, social and governance (ESG) standards makes investing sense, reduces risk and creates an easier path to exit. Growth equity is the cornerstone of our investment process and simply put, companies that create jobs generate superior returns.

There is an early mover premium entering nascent markets. Our team is the most experienced group to create an ecosystem around rural Frontier Asia. We have people who were bankers, have run companies, have been entrepreneurs as well as public/private PMs who have the necessary operating skills for discrete value capture and creation. Impact investing is a multi-disciplinary process and we have the necessary tools to help fast growing companies overcome the hurdles they face while helping the Sovereign connect to the global financial architecture.

Our portfolio is divided into three areas - Supply Chain, Scalable Access and Ed-Med. Supply chain is basic manufacturing and logistics sector allowing for increased industrialization, exports and employment opportunities. Scalable access allows for better access to capital, investment products and ICT. ED-Med improves human capital, skill set transfer and health. Each area focuses on a “seed of development” - local capital formation, job creation and productivity – empowering sovereign alpha.

One investment. One job. One empowered community at a time.