Our strategy is to invest in medium-sized listed companies with a Private Equity (PIPE) approach using the ecological transition as a framework, in the spirit of constructive activism.
The aim of Aqua Asset Management is to position itself as a player in the ecological transition by reflecting on the transformations underway and their translation into investment support.
Due to strong expertise in this field through an established track record (Evergaz / wind and solar assets / energy efficiency), Aqua Asset Management has identified the theme of the ecological transition as a framework to invest in companies that will become the beneficiaries of this major change.
As an asset management company active in the ecological transition sector, Aqua Asset Management could have made the usual choice to create a Private Equity fund (Capital Development France for instance). We prefer to position ourselves in the sector that is most relevant for us: PIPE (Private Equity in Public Equity).
Our analysis is as follows: in a stock market world where the various regulatory constraints (diversification ratios, MiFID 2) have had the effect of polarizing the market between so-called passive management (index replication) and so-called active management there is an underused space, that of medium-sized companies in search of a strategy, a management and a shareholder base.
So-called active management is able to handle the case of companies that are in an established strategic trajectory led by a board and / or management on which the active manager has no influence. Conversely, for off the radar companies, the catalyst for growth / return to profitability is through an activist mode found in Private Equity.
By having a longer horizon than the conventional players, by integrating the Board of target companies and providing strategic and financial support, Aqua Asset Management, due to its dual listed / unlisted track record, is able to address this segment at the pan-European level (which is quite rare for Private Equity small caps) and take advantage of the inefficiency observed so far in this market segment (few players have this dual competence)