Asia investment specialist Arisaig is set to complete its regional smaller companies coverage with t...
Asia investment specialist Arisaig is set to complete its regional smaller companies coverage with the launch of a new vehicle, the Arisaig Korea fund.
The company's flagship, the $270m Arisaig Asian Smaller Companies fund, run by former GT fund manager James Alexandroff, has been closed to new investments for around 18 months.
As with all Arisaig funds, it takes a strongly bottom-up approach to investing.
Alexandroff said: "Our focus is on company specifics which requires a strong on-the-ground presence. We wanted to have resources in Singapore, India, Hong Kong and Seoul and have gone about this by forming joint ventures in each.
"In India, we have a joint venture with Madhav Bhatkully, who runs Arisaig India, and in Hong Kong we have Wan-Hon Chua, who runs our Greater China fund.
"The Asean fund is run by Arisaig founding partner Lindsay Cooper and the Korea fund, to be run by FW Kang, will be the final piece of the jigsaw, giving us coverage of all 12 markets in the region."
The funds will also be accessible via an overall 'holding' vehicle, Arisaig Asia. This will feed into the four specialist funds, as well as the Asian Smaller Companies fund.
Half of Arisaig Asia will invest in Asian smaller companies, with 40% of the remainder in Greater China, 20% of the remainder in Arisaig India, 20% in the Asean fund and 20% in Korea. These weightings will remain fixed and, as a bottom-up investor, Arisaig does not plan to asset allocate between funds.
The Korea fund, like all Arisaig funds, will focus on smaller companies, particularly those with a domestic consumer-related slant.
Cooper said: "We focus on brand-owning companies in sectors such as media, insurance, distribution, healthcare and education. We believe these offer higher quality earnings and stronger cashflow."
The management fee is 1.75% annually plus a performance fee. If a fund exceeds a return of 42.4% after three years, the manager is entitled to 10% of the excess over that hurdle.
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