What We Do

Emerging markets have almost seven times the population of developed markets, but only one seventh of the per capita consumption.

Arisaig aims to deliver long-term, compounding returns by investing in purposeful growth in emerging markets.

This is all we do.

Who We Are

Arisaig Partners is an independent, employee-owned, investment management boutique established in 1996.

We manage portfolios of high quality, high growth businesses, which by creating value for multiple stakeholders, will earn the right to capture the full extent of emerging market growth over the coming decades.

Meet the team

We aim to hold ourselves to the same purposeful growth ideals we expect from our holdings, and align our own business to the ultra-long-term time horizon of our investments.

The firm is managed by the second generation of partners who each hold an equal stake in the company and have been with the firm for half of its lifetime. Our research team is spread across three offices, providing us with the reach and specialised focus required to truly understand and engage with a diverse range of emerging market opportunities.

We have integrated ESG analysis since our inception, developing a much more sophisticated understanding of E and S factors since becoming the first Asia-based signatory to the UN PRI in 2010. We do our own homework, understanding that standardised disclosure is often weak in the EM context, rendering third party datasets unreliable. We have been carbon neutral for over a decade, and were founder signatories to the Net Zero Asset Managers Initiative in 2020. As of 2021 we are a certified B Corporation.

Key Stats

$4.6bn

Under management1

23 year

TRACK RECORD

13.0%

Cagr2

9 years

client tenure3

Holding period3

1 as of end August 2021.

2 Reflects the performance of Arisaig Asian Small Companies Fund from 1996 to 2000, Arisaig Asia Fund from 2000 to 2010, Arisaig Consumer Fund from 2010 to May 2021 and, thereafter, of the Arisaig Asia Fund.

3 Approximate average periods for the Arisaig Asia Consumer Fund. Please note, with effect from 7 May 2021 the fund name has changed to Arisaig Asia Fund. 

Lessons Learned

Our two decades of investing in emerging markets has taught us some important lessons about how to add value to clients looking for growth.

  • Focus on fundamentals
    Short-term valuation metrics tell us nothing about the long-term value of a market or business
  • Invest for the long term
    Our expertise is finding the best businesses; not timing the market
  • Engage with holdings on the bigger picture
    We help our businesses access sustainable growth by highlighting global best practices
  • Don’t predict macro
    Disregarding the inherent ‘background noise’ of emerging market growth is often the hardest part of what we do

Investment philosophy

Our Approach

  • Thesis

    Nearly 25 years of experience investing in emerging markets has taught us that the concept of ‘Purposeful Growth’ delivers superior operating performance for our holdings and earns them the right to grow forever.   

    Purposeful Growth’ is an organisational principle which requires businesses to think about the overall value creation of the enterprise across multiple stakeholders, including customers, employees, the environment, and local communities.  

    These businesses are characterised by: 

    Domestic demand focus: we focus only on emerging markets given the growth opportunity and their scale – 8/10 people on the planet live there. We invest in businesses that are as excited as us by this opportunity. 

    Long-term outlook: Our portfolios are comprised of businesses which naturally think intergenerationally and so demonstrate superior innate understanding of the scale and longevity of this growth opportunity. This enables them to sustain high levels of long duration compound earnings growth, which in turn drives share price performance. 

    Masters of their own destiny: The quality of the businesses, in terms of both financial metrics (in particular high returns on capital employed) and the quality of management teams means purposeful growth businesses are able to identify and build new vectors of growth and be able to fund this with their own cashflows.  

  • Style

    It is our belief that the best possible investment outcomes for Arisaig and our partners will result from patient, deliberative, strategic allocation of capital towards the purposeful growth businesses best positioned to succeed over the long-term.

    This ‘endurance investing’ approach is best reinforced by a collaborative, research-driven decision-making structure. Trades should be infrequent, following debate, discussion and ‘fair and sophisticated criticism’ of potential allocation decisions. We see low portfolio turnover as a virtue.

  • Portfolio

    Arisaig has always followed a consensus-based approach to decision-making, eschewing an overreliance on individual portfolio managers and the ‘sharpshooter’ approach prone to impulsive, short-termist behavioural pitfalls. We take investment decisions by using an Investment Committee structure which is chaired by our Singapore licensed investment management entity and made up of partners. There is a separate sub-IC per each strategy in order to ensure accountability within the collegiate IC structure.

    The committee represents the final stage of a long, team-based research process which builds towards investment consensus. Nonetheless, we believe it is important to reinforce the behavioural benefits of collective decision-making at this final stage of the process through the formal committee structure.

  • Responsibility

    We practise full ESG integration and constructive engagement as part of our ongoing fiduciary duty. We proactively share our views with management, with whom we meet regularly. The entrepreneurs we back understand and protect our interests as minority shareholders and take governance and sustainability issues seriously.

  • Alignment

    Arisaig is independent and our partners and founders sit alongside our investors as shareholders of our funds. We build close and lasting relationships with our clients, who value our transparent approach to communications and the openness of our investment team.

Our Funds

We offer one regional strategy for accessing emerging market growth in Asia, as well as a Global Emerging Markets strategy. Our Next Generation Fund invests for financial returns and positive impact across global emerging markets.