Currently seeking investment, the boutique firm New Sparta Asset Management (NSAM) will provide institutional investors with access to high-growth private opportunities across the emerging markets spectrum.
Initially focusing on renewable and conventional African energy projects, the firm will utilise an active management approach to target pre-initial public offering ventures.
Booth will act as NSAM chairman alongside chairing the investment committee, with former senior IMF official Ousmene Mandeng and economist Liam Halligan taking up respective berths as head of research and development and member of the investment committee.
Chris Raeder and Mark Weiller – both formerly of Ashmore – join as general counsel and head of distribution respectively.
EM opportunity
Booth, who spent two years as a private equity investor after leaving Ashmore, explained that the decision to launch was driven by both the wealth of emerging market opportunities currently available and a discrepancy in portfolio distribution.
“Financial theory is not fit for purpose and its inappropriate use has created huge distortions in global asset allocation,” he said.
“People should be investing in emerging markets – not just for returns, but to reduce risk as well – because it meets their future liabilities. A lot of people are thinking too small in terms of potential, and I have decided to become more active again in order to encourage institutional investors to invest more in emerging markets.”
Booth continued: “We are effectively doing private equity, but it is about trying to add more than just capital – we are trying to take more control and add knowledge, which not only helps the company but also reducing risk and greater information for investors.
“We are initially looking for institutional investors. This is the start of the process, and funds will come once we have talked to investors.”
Awaiting regulatory approval on various issues, NSAM has entered into a partnership with London-based investment manager Tower Gate Capital, which will provide the necessary regulatory umbrella until submissions to the FCA have been cleared.
