Market Update — March 2021
Market Update
We at Flat World have spent a lot of time in the last several weeks looking at the theme of carbon in the Built Environment. When we talk about the built environment, we’re talking about the carbon-hog and every New Yorker’s favorite topic of conversation — real estate. Real estate is the world’s largest contributor to the climate crisis, responsible for upwards of 23% of air pollution, 40% of drinking water pollution, and 50% of landfill wastes globally. Legacy players’ extensive building stock and cumbersome supply chains have made technology integration slow, with little incentive for costly improvements or systemic change.
We see solutions in a few areas: technologies, from materials innovation to SaaS platforms, have strong bottom-line potential for developers and operators; disruptive alternatives to traditional buildings such as modular housing, net-zero designs, etc.; and regulation, carbon pricing and certification commitments for large real estate incumbents. Although still a relatively small universe of investment opportunities, built environment is a theme rapidly growing in popularity, resulting in more thematic VC funds coming to market in this space and an added focus on sustainability by existing real estate players.
Please reach out to info@aflatworld.com for more detail and exploration of investing in the built environment.
Investment Highlights
In May of last year, Flat World Partners invested alongside our clients in healthcare technology company Cue Health. Cue has developed a digitally connected diagnostic platform the size of a Rubik’s-cube which enabled a range of in-home and in-clinic testing for infectious diseases. Cue’s first commercial diagnostic product was focused on rapid testing for COVID-19 point-of-care testing. The test uses amplification methods to detect virus in genome, in less than 25 minutes, with the same accuracy and greater precision than current lab methods, without the need for specialist training.
In Oct of 2020, the company received $481 million from the Department of Health and Human Services to ramp up production of its rapid diagnostic test for COVID-19. At the same time, the NBA announced they would be using Cue’s rapid diagnostic for its “bubble” pilot program.
Having already received Emergency Use Authorization (EUA) in June 2020 for clinical settings, the company just received more good news this week when the FDA issued its first EUA for an in-home COVID-19 test, as well as being available OTC at drug stores. We are very pleased with Cue’s progress, both from an investment and impact standpoint.
If you want to learn more please feel free to reach out to Derek Brooks, [dbrooks@flatworldpartners.com].
Impact News
Today SEC law goes into effect that raises the limit for crowdfunding private securities transactions from $1.07m to $5m. This is a big win for smaller investors, as they now have increased access to the same investments as accredited investors — and the returns that can accompany them. This rule change could spur up to $1 billion in investments and this theme of financial inclusion is one we expect to see continue among lawmakers.
Upcoming Events
Hedge Funds and ESG — Achieving True Impact & Returns
Wed, March 24th, 2021 at 9am EDT
Titan Advisors, a $5 billion asset manager, and Flat World Partners formed a joint venture to launch the first ESG Hedge Fund of Funds, Titan Eclipse, on Dec 1st, 2020.
Join us in a discussion moderated by Anna-Marie Wascher, Founder and CEO of Flat World Partners, a panel of portfolio managers in the Titan Eclipse Fund, as well as Patrick Campo, Director of Research at Titan, regarding their insights, experiences and views on the ESG mega trend and provide examples of hedge fund strategies that genuinely meld impact with performance. We look forward to seeing you then!
Please RSVP here to receive registration details.
About Us
Flat World Partners is an impact investment advisory firm that builds competitive, values-aligned portfolios for family offices, multi-family offices, foundations and other institutional investors. A leader in sustainable investing across asset classes, we have deep knowledge of the market and have relationships with top-performing managers and entrepreneurs. FWP can evaluate and optimize investment portfolios for impact including carbon, diversity and other sustainability metrics. We work in a custom fashion to meet the needs of our clients and find the right solutions for their impact goals.
Please feel free to reach out to fwp@aflatworld.com should you have any questions, comments, or just want to connect! We look forward to hearing from you!
Communications from Flat World Partners are intended solely for informational purposes, and should not be construed as investment/trading advice and are not meant to be a solicitation or recommendation to buy, sell, or hold any securities mentioned. Any such offer or solicitation can only be made by means of the delivery of a Confidential Private Placement Memorandum, which contains a description of the significant risks involved in such an investment. All figures are estimated and unaudited unless otherwise noted. Past performance is not necessarily indicative of future results.
Flat World Partners is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority or any state securities regulatory authority. At present, Flat World Partners is exempt from registration as an investment adviser in the state of New York.
