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Sector

Private Equity + Debt

Geography

Arlington, VA, USA

Deal Date

August 2019

Deal Size

$3.0m

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About the Manager

Established in 2005, Albright Capital Management ("ACM") is a global investment firm that combines best practices from private equity and structured credit to provide customized financing to mid-market companies operating in global emerging markets. ACM are global in scope, investing flexibly in opportunities where capital scarcity drives price inefficiencies and where their investment will have a positive impact on local populations. Both this positive impact approach and their customised deal structures significantly mitigate downside risk.

ACM’s senior investment team averages over 20 years’ investment experience, with many of the team having invested together for over a decade. The company's name is derived from Madeline Albright, the former Secretary of State. ACM have a strong partnership with her strategic advisory firm Albright Stonebridge Group (ASG). ASG provides ACM a presence in 110 countries around the world. 

Investment Approach:

Albright Capital

  • Seek high quality cash flows where capital is scarce

  • Investments will have a positive impact on local populations, mitigating downside risks in the process

  • Integration of ESG variables into process; UNPRI signatory; adoption of IFC standards

  • Need to be global in scope, investing to capitalise on opportunities wherever they emerge in EM

  • Investing flexibly across capital structure to best capture asymmetric risk/return profiles

  • Seek to understand which risks are real, and which are perceived - ASG invaluable here in having genuine perspective where political and macro risks can be overblown

  • Structure bespoke investment solutions to protect capital

  • Partner with good people

  • <1% loss ratio and truly uncorrelated investment returns

About the Deal

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Investment Amount

$20 million total contingent commitment
$3 million drawn at August 2019 close
$17 million to be drawn incrementally if Albright raises additional capital

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Structure

A preferred interest entitled to significant distribution preference until return of capital, and common participation that increases as capital is called.

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Capital Protection

One seat on the governing committee of the Company, growing to two at 20% of “common”, negative consent rights including, but not limited to, anti-dilution, anti-circumvention, and seniority protection.

The Manager's Use of Proceeds

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Up to $3 million may be used for non-reimbursable operating expenses of the business. The remaining, at least $17 million, to fund a 1% GP Commitment into Albright funds.