US-based sustainability specialists Capricorn Investment Group has bought a 13% stake in fellow ESG house Osmosis Investment Management, in a deal designed to bolster Osmosis' expansion into the US market.
Capricorns Sustainable Investors Fund, which focuses on seed investments in the sustainability and impact space, has taken 13.1% equity in the London-based firm for an undisclosed sum, joining the Oxford Endowment Fund – which runs money for Oxford University in the UK – as a large minority shareholder in Osmosis.
Off the back of the deal, Osmosis will launch its debut US fund, the Osmosis Sustainable Market Neutral Strategy, mirroring an existing UCITS fund it offers in Europe that takes long positions in the most resource efficient firms while shorting resource-heavy ones. Capricorn has agreed to seed that strategy to the tune of $30m, in addition to its equity investment in the fund manager itself.
Osmosis launched in 2009 and current…