Investment Philosophy

Subheader background image

Our Investment Philosophy

57 Stars invests through private equity and venture capital fund partnerships, co-investments and secondary acquisitions in high-growth sectors of the global economy that are driven by secular tailwinds, disruptive forces and technological innovation, adaption, and adoption. 57 Stars investment strategy applies a thematic investment approach, identifying powerful macro-level trends and sourcing investments that stand to benefit from the materialization of those trends in key economic sectors.

In addition, the firm has pursued structured transactions, co-investments with high upside potential, and opportunistic secondaries to create a more resilient portfolio with an aim to reduce J-curve.

Having formally integrated ESG into our diligence process more than a decade ago, we are continuously striving to improve our approach to employing ESG best practices across our investment process. To this end, we have developed a comprehensive Environmental & Social Management System (“ESMS”) and ESG policy, and have devoted significant resources to expanding our ability to conduct due diligence, monitor, and report on ESG and impact metrics.

  • Rigorous and systematic focus

    to identify high
    quality markets and
    partnerships

    Thematic Investing Feature Media

    Thematic Investing

  • Committed responsible investor

    continuously striving to improve our approach to employing ESG best practices across the investment process

    Customized Solutions Media

    Impact Investing

  • Hands-on
    investor

    with proprietary deal origination and flexible structuring capabilities

    Impact Investing Media

    Customized Solutions

Our target geographies include select markets outside of the United States and Western Europe, which constitute approximately 60% of global GDP as of October 2020, and are growing at a rate well in excess of that of developed markets.

Technological innovation, growth of the consumer class, and the proliferation of mobile internet and smartphone access in these markets are creating businesses that are scalable, resilient, and sustainable.

New business models driven by emerging technologies

Mobile adoption & digitalization

Internet of things

Cloud / data infrastructure

Big data & analytics

AI / machine learning

Battery technology

Increased opportunity

Investment Strategy

  • Growth Capital
  • Venture Capital
  • Co-investments
  • Secondaries
  • Special Purpose Vehicles

Geography

Countries and regions
where economic sectors are undergoing disruptive change due to technological innovation and adaptation

Current Focus Sectors

  • Health & Care-related Technologies
  • Tech-Enablement
    • Consumer
    • Enterprise
  • Fintech & Financial
    Services
  • Environmental
    Sustainability

Demand
Growth

Tag Pixel

60% of world GDP3

Tag Pixel

EM middle
class population 4x DM
by 20304

Tag Pixel

5x more
Internet‐enabled
devices in EM
vs. DM5

Tag Pixel

Fewer legacy
systems allow
for quicker
adoption

Tag Pixel

Low cost,
far reaching
distribution
network

Burgeoning market opportunity driven by the rapidly growing middle class

Figure pertains to the broader investment space. A unicorn is defined as a private company with a valuation of USD 1 billion or more. Source: Hurun Research, June 2020.
 
Source: 57 Stars analysis based on reports from IMF, Statistica, E-commercedb, IDC, IMS, Espicorn, MOH, McKinsey, Deloitte, SKP, Global Findex Database, and The Business Research Company.
 
Source: IMF World Economic Outlook, October 2020
 
Source: Brookings Institution report: “The Emerging Middle Class in Developing Countries”
 
Source: Statista
 

There can be no assurance that 57 Stars will replicate past results or meet its objectives in the future.