Capricorn acquires significant stake in Guernsey-based asset manager

11 December 2017

Private equity and hedge fund firm Capricorn Capital Partners has led a group of investors to acquire a significant equity stake in Guernsey-based asset management company RAW Capital Partners.

As part of the transaction, Capricorn has also secured multi-million-pound investment in the RAW Mortgage Fund, loan investments backed by UK residential property, and RAW Sterling Cash Deposit Fund, a high-interest and diversified bank deposit fund.

RAW Chief Executive Richard Avery-Wright said the deal was great news for Guernsey because the two companies shared a vision for building a significant financial services business based in the island.

“Our team has worked tirelessly for over five years to produce innovative products and services for clients. We are absolutely delighted to be partnering with an investor group led by Capricorn. We have an exciting future ahead,” he said.

A Capricorn spokesman explained that the company’s initial interest in RAW was on behalf of its insurance clients as potential investors in the RAW Mortgage and Cash Funds.

The Raw Mortgage Fund provides an especially attractive investment for insurance balance sheets, combining compelling risk-adjusted returns with capital efficiency.

He said: “Through our diligence process it became apparent that there was an opportunity to partner with RAW to build a meaningful and sustainable asset origination and lending platform, which offers an attractive value proposition for both investors and borrowers.

“The RAW team combines deep domain expertise with highly capable operators. RAW’s investor-centric approach, track record and business building ambitions resonated strongly with us. Both RAW’s shareholders and Capricorn Capital Partners have successful track records in building fund management businesses and we are extremely excited about the potential of this new partnership. At the heart of it RAW is managing products we are proud to promote to our clients and wider networks.

“We have secured multi-million-pound commitments from our insurance clients, which should provide RAW with the opportunity to leverage its platform by satisfying the significant demand for its excellent product base.”

Capricorn has its roots in Hollard Insurance, the largest privately-owned insurance group in South Africa. It focuses on private equity investments in the financial services sector including asset advisory businesses and also acts as an investment advisor.

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