Ariadne Capital (Ariadne) has launched the Ecosystem Economics Fund I, a GBP150 million investment fund based out of London.
The fund solely focuses on backing ‘Digital Enablers’ – typically fast-growing, young businesses who bring the ability to exploit Ecosystem Economics to big and established businesses – transforming existing non-technology traditional industries. There already is strong investor interest and a cornerstone investor, targeting a first close in Q1 2016.
The fund offers investors disruptive economics to its Limited Partners in that it is only charging a 1 per cent management fee with 25 per cent carried interest and no fees on the 3X co-investment platform. This reduces the fees associated with high-growth tech investment to 12.5 per cent of the 100 per cent they are normally, firmly reflecting Ariadne’s commitment to revolutionising the industry and to establishing it as an asset class which will be no longer categorised as ‘alternative’.
Commenting on the launch, Julie Meyer, CEO of Ariadne, says: ‘At a time of subprime unicorns, the new investment opportunity set that we have developed is to back Digital and Platform Enablers who are working with incumbent, large, established entities who are intent on re-inventing their industries, whether they be banking, insurance, retail, smart home or transportation. Distinct from a typical venture capital fund, the Ecosystems Economics Fund is one that will disrupt the industry by connecting these David and Goliath enterprises together, resulting in platform businesses that are anchoring the respective ecosystems in Europe.’
Amit Pau, Managing Director at Ariadne, says: ‘The fund will enable Ariadne to continue to back the innovation winners in a manner very consistent with what we’ve been doing during the past 15 years. This will be done by leading the identification of great entrepreneurial game-changers with our capital and value-add, in addition to working with family offices and institutional investors, through the co-investment platform, who have an appetite for high-growth digital technology but may not have access to a network the size and depth of ours.’
