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Capricorn Investment Group takes stake in UK-based Osmosis Investment Management

Thursday, May 28, 2020
Opalesque Industry Update - Osmosis Investment Management, the London based sustainable asset manager, has successfully closed an equity investment from Capricorn's Sustainable Investors Fund, a seeding fund focused on sustainable and impact investment managers.

The deal, which was closed in the first quarter of 2020, will see Capricorn's Sustainable Investors Fund join the Oxford Endowment Fund as large minority shareholders of Osmosis (Holdings) Limited and Capricorn partner Michaela Edwards take a seat on the Osmosis board. The strategic equity investment will deepen the firm's US presence and facilitate the launch of the Osmosis Sustainable Market Neutral Strategy for US investors.

The strategy will be a levered replication of the Osmosis Sustainable Market Neutral Strategy which is currently run in a UCITS structure not available to US investors. The strategy will allow sophisticated institutional investors seeking a source of uncorrelated return to equity markets to allocate capital from their alternatives book with a positive environmental focus.

The Osmosis Sustainable Market Neutral Strategy takes long positions in the most resource-efficient companies while shorting the most inefficient companies as defined by the Osmosis Model of Resource Efficiency.

Ben Dear, Chief Executive Officer of Osmosis Investment Management, says, "We are delighted to welcome Capricorn as a shareholder in Osmosis. Both parties share the same values and philosophy. We believe that the transition to a more sustainable economy and the critically important role the investment community holds in facilitating and ensuring the "must" transition is a "just" transition. As we emerge from the current crisis, all stakeholders, companies, employees, investors and society at large will be driving forward meaningful change."

Michaela Edwards, Partner of Capricorn Investment Group, says, "We are excited to partner with Osmosis. Ben and his team share the same vision as Capricorn that companies with the most climate resilient and efficient business models will be advantaged and should have a lower cost of capital, stronger fundamentals, and ultimately grow enterprise value. As we address climate change issues, we need more firms like Osmosis being a catalyst to make the transition."

The Osmosis investment approach of targeting excess return while delivering measurable, environmental benefits has seen increased investor interest as investors seek to address environmental concerns within their investment portfolios. The partnership with Capricorn further endorses this objective and pragmatic approach to sustainable investment.

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