∙ Alquity, the leading responsible investment manager and Spouting Rock Asset Management form strategic partnership
∙ Investors can now access world-class ESG and impact funds in U.S. through new investment and distribution platform
∙ Spouting Rock Asset Management becomes a key shareholder
Alquity, the leading responsible investment manager, and U.S.-based Spouting Rock Asset Management (Spouting Rock) today announced a joint venture and the creation of a new platform to give U.S. investors access to world-class ESG and impact funds.
The strategic partnership will create a distribution platform for Alquity’s funds in the U.S., including its Global Impact Fund and Future World Global Emerging Markets Fund. The partnership also includes Alquity’s Indian Subcontinent Fund, which was in the top-ten performing equity funds globally in 2021, according to FT Adviser, proving there is no performance trade off with ESG and Impact.
ESG-focused funds globally saw their combined assets climb to $3.9 trillion in Q3 2021, according to data compiled by Morningstar. While Europe remains the stand-out leader in sustainable funds, both the U.S. and Canada remain early-stage markets. The mission of the new investment and distribution platform is to accelerate the multibillion-dollar ESG and impact investing opportunity in North America.
“The North American market is an exciting opportunity to make a difference and deliver impact at scale. We believe both the United States and Canada are prime markets to get ahead of the ESG and impact curve,” said Brad Crombie CEO, Alquity. “But you also need partners with strong connections and a long-term commitment to the market. This is why we are so excited to work with the team at Spouting Rock who have the experience, relationships and distribution architecture to help Alquity establish itself as one of the leaders in the largest growth segment of the market.”
Spouting Rock, which is also investing in the London-based firm, provides alternative, traditional and thematic investment solutions that seek to enhance portfolios and protect wealth. This joint venture is the latest addition to the firm’s curated manager platform of well-vetted, active investment solutions. Most recently in 2021, Spouting Rock established a joint venture with Bell Asset Management of Australia, acquired a minority stake in Glovista Investments and finalized its majority investment in Penn Capital.
“We’re excited to welcome our UK partners to the Spouting Rock platform,” says Andrew Smith, Chairman of Spouting Rock. “We are committed to offering purposeful investment solutions for our clients, including ESG strategies that allow investors to align their capital with environmental and social values. Genuine, top-quality pure play ESG and impact investment managers are difficult to find, which is why we are so excited to have the opportunity to bring Alquity into the U.S.”
Alquity is the bridge between listed equities and impact through pioneering its 3-D investment model fusing financial performance, high-quality portfolio ESG and catalytic capital for local impact.
“Building a presence in the U.S. market will create an opportunity for us to achieve a quantum leap in AUM and therefore the lives we transform. Alquity is all about building a better fairer and more sustainable world. Our portfolios drive better corporate behaviours and progress towards the UN Sustainable Development Goals. We are extremely excited to have found the right partner in Spouting Rock to develop this across the U.S.,” said Paul Robinson, Alquity Founder and Chair.
This is the latest in Alquity’s ongoing trajectory of developing strategic partnerships and attracting investment. Last year, the London-based firm formed a partnership with East Capital Group, as well as completing its capital raise with backing from the founders of Investible, Australia’s leading seed stage investor, and from asset management pioneer Martin Gilbert.
In addition, as of December 31, 2021, Alquity’s Transforming Lives programme, in which it injects 10% of its fee revenues, has impacted more than 65,000 people by granting more than $2.4m in the regions where the company invests. This social investment also provides a feedback loop back into the investment teams – a mechanism which differentiates its approach.