Legatum Explained

Legatum
Type:Private
Foundation:December 2006
Founder:Christopher Chandler
Location City:Dubai
Location Country:United Arab Emirates

Legatum Limited, also known as Legatum, is a private investment firm, headquartered in Dubai, United Arab Emirates.[1] Legatum is a partnership that uses its own funds to invest globally.[2] [3] [4] The firm also invests in activities to promote entrepreneurship and free enterprise as well as anti-slavery, health and education initiatives.[5] [6] [7] [8] [1]

History and business activities

Legatum (meaning "legacy" or "gift"[9]) is a private investment firm based in Dubai using only capital provided by members of the firm.[10] Legatum was founded in December 2006 in the United Arab Emirates by Christopher Chandler, who made his fortune in markets undergoing political transitions.[11] Previously, Chandler was the president of Sovereign Global, or Sovereign, which he co-founded with his brother Richard Chandler in 1986. Sovereign invested capital in companies located in Asia, Africa, Latin America and Eastern Europe, and in industries including telecommunications, electric utilities, steel, oil and gas, banking and oil refining. The Chandler brothers embarked on separate ventures following the de-merger of Sovereign in 2006. Christopher Chandler established Legatum the following December.[12] In 2012, Legatum purchased a building in the Dubai International Financial Centre for its global headquarters. The building was renamed Legatum Plaza, and the company moved into the building the following year.[13]

In 2015, Legatum transitioned to a partnership, consisting of Christopher Chandler, Mark Stoleson, Philip Vassiliou and Alan McCormick, providing a structure for the firm to continue operating beyond its founders.[14]

Investments

The firm's investment activities tend to focus on globally listed companies, markets in economic transition (such as Japan or China), or distressed situations.[15] [16]

Legatum was one of the first foreign commercial investors to provide critical equity capital to for-profit microfinance organizations in India, investing $25 million for a majority stake in SHARE Microfinance, India's leading microfinance institution.[17]

In 2006, the company co-founded an early charity crowdfunding platform, Razoo Global Corporation, based in Alexandria, VA. The platform has raised US$550 million in crowdfunding since its establishment. It announced a management buy-out of Legatum's holding in 2017.[18]

In 2007, Legatum purchased a significant minority stake in Intellecap, which provides consultancy advice to companies in Asia and Africa, and which it subsequently sold back to its owner, the Aavishkaar Group, in 2017.[19]

In 2008, Legatum and Omidyar Network, a philanthropic investment firm founded by Pierre Omidyar, collaborated to co-invest a total of $40 million into Unitus Equity Fund II (now known as Elevar Equity). The fund is a commercial venture providing capital to businesses targeted at serving the poor in the developing world.[20] In 2021, Legatum invested in GB News, a new UK TV channel that later breached broadcasting rules by misleading viewers over Covid-19 vaccination.[21] [22] [23]

Also in 2021, Legatum invested in Mobile Premier League, an esports and gaming platform.[24] [25]

Support to other entities and schemes

As of 2014, Legatum had invested around US$80 million in 1,440 projects in 107 countries.[15] Legatum focuses on three core areas of philanthropic investment: development, entrepreneurship, and policy innovation.[26]

Development

Legatum Foundation is the development arm of Legatum and invests in community-based organizations and projects around the world to help the poorest and most marginalized people and populations in society.[27] In 2015, Legatum established the Luminos Fund, a private donor philanthropic fund designed to develop and scale initiatives which promote education by helping out-of-school children get back to school.[28] [29] [30] The 2020 expansion of the Speed School Programme to Ethiopia was funded by the Foundation.[31] During the coronavirus pandemic of 2020, Luminos worked with Syrian refugees to offer educational support and therapeutic interventions for school-aged children.[32] By February 2020, the Luminos Fund had provided education for 132,611 children in Ethiopia, Lebanon and Liberia, whose access had been limited due to conflict, discrimination or poverty.[33]

Legatum founded the END Fund in 2012 to co-ordinate and support programmes to treat neglected tropical diseases, which affect over 1.5 billion people globally.[34] [35] [36] Legatum first started funding NTD work in 2006, after Legatum partner Alan McCormick visited Professor Alan Fenwick (Professor of Tropical Parasitology) at Imperial College London, who in turn had founded the Schistosomiasis Control Initiative in 2002. It has since led to Legatum investing over $10m in efforts to eliminate NTDs.[37] [38] Legatum has also funded more than one thousand community-based health initiatives that are solving common concerns in the developing world, like blindness and agricultural harm.[39]

In 2013, in partnership with Humanity United and Walk Free, Legatum established a $100 million fund called the Freedom Fund.[40] The aim of the fund is to help eradicate modern day slavery, an illegal industry that generates over $32 billion in profits every year around the world.[36] [41] [42] [43] Prior to the founding of the Fund, Legatum sponsored a 2012 information-gathering trip for non-profit organizations in Nepal and India to learn more about the human trafficking and slave-trade industries there.[44]

Entrepreneurship

In 2007, Legatum established The Legatum Center for Entrepreneurship at MIT with the aim to create a generation of business leaders in developing countries by providing them with the skills needed to succeed as entrepreneurs.[45] [46] Fellowships are granted to students who show entrepreneurial ambition and an interest in making a lasting and positive economic impact on low-income countries.[47] [48]

Throughout 2017, the Center had distributed over $7 million to 213 fellows and launched enterprises across 40 countries.[49] The Legatum fellows have pursued businesses that tackle social issues such as improving sanitation by converting waste products into fertiliser in Kenya, establishing plastic recycling businesses in Nigeria, and improving the clothing industry's conditions in Tanzania.[50]

Legatum established the annual Africa Awards for Entrepreneurship program, which recognises and rewards business leaders who serve as role models to Africa's aspiring entrepreneurs.[51] [52] The scheme has been in operation since 2007 and is now run by the African Leadership Network, with Legatum still involved as a lead sponsor.[53]

In 2008, Legatum partnered with Fortune magazine to announce the Legatum Fortune Technology Prize, a $1 million award intended to reward for-profit businesses who provide products and services to the needy through the use of technology.[54]

In 2013, Legatum launched the Centre for Entrepreneurs (CFE) in partnership with Luke Johnson to promote and support entrepreneurs in the UK.[55]

Policy

See main article: Legatum Institute. Legatum Foundation is a sponsor of the Legatum Institute, a policy, advisory and advocacy organization based in London.[56]

External links

Notes and References

  1. Web site: Legatum Foundation helping community-based organisations thrive . Khaleel . Zenifer . 1 July 2011 . Gulf News . 23 February 2018.
  2. Web site: UAE firms help women back to work after childbirth . McKechnie . Krysia . 29 November 2017 . The National . 23 February 2018.
  3. News: India offers opportunities for long-term investors . Smith Alexander . George . 9 October 2007 . The Economic Times . 23 February 2018.
  4. Web site: Dubai's Legatum invests Rs125 cr in Share Microfin, picks 51% stake . Banerjee . Gargi . 16 May 2007 . Live Mint . 23 February 2018.
  5. Web site: MIT's Legatum Center Unleashes Entrepreneurs, Alters Thinking About Developing Countries . Springer . Jon . 26 February 2014 . Forbes . 23 February 2018.
  6. Web site: Legatum CEO Mark Stoleson on Capital Inflows in India . Prasad . ShiShir . 21 May 2013 . Forbes India . 22 February 2018.
  7. News: Everywhere in (supply) chains . 12 March 2015 . The Economist. 23 February 2018.
  8. Web site: Philanthropy: the search for the best way to give . Jack . Andrew . 18 April 2017 . Financial Times . 20 February 2018.
  9. Web site: MIT's Legatum Center Unleashes Entrepreneurs, Alters Thinking About Developing Countries . Springer . Jon . 26 February 2014 . Forbes . 10 November 2015.
  10. Web site: India offers opportunities for long-term investors . Smith Alexander . George . 9 October 2007 . . 10 November 2015.
  11. News: Britain must seize the opportunities Brexit offers — or remain in the EU. Simon. Nixon. 9 November 2017. www.thetimes.co.uk.
  12. Web site: From Brainstorm: Our new $1 million prize, and more . Kirkpatrick . David . 25 July 2015 . Fortune Magazine . 10 November 2015.
  13. Web site: Legatum buys DIFC's Precinct Building 6 . Cronin . Sean . 11 April 2012 . The National . 11 November 2015.
  14. Web site: Legatum Limited . Dubai International Finance Centre . 22 March 2018.
  15. Web site: Principles Before Profit: Q&A With Legatum Group CEO Mark Stoleson . Falconer . Tim . 28 January 2014 . . 10 November 2015.
  16. Web site: School aims to seed the world with business sense . Clark . Andrew . 21 May 2008 . . 10 November 2015.
  17. Web site: Dubai's Legatum invests Rs125 cr in Share Microfin, picks 51% stake . Banerjee . Gargi . 16 May 2007 . . 10 November 2015.
  18. News: Razoo Management, a Charity Crowdfunding site, buys out founder Legatum. Crowdfund Insider.
  19. Web site: Exclusive: Aavishkaar buys back Intellecap stake from Legatum Ventures . Roy . Debjyoti . 27 July 2017 . News Corp. 18 February 2018.
  20. Web site: Legatum and Omidyar Network Invest $40 Million as Anchors of Unitus Equity Fund II, a Landmark Private Equity Fund Focused on the Poor - Omidyar Network. www.omidyar.com.
  21. News: 6 January 2021. New TV channel seals funding to challenge British media 'consensus'. en. Reuters. 2 February 2021.
  22. Web site: 6 March 2023 . Ofcom finds the Mark Steyn programme on GB News in breach of broadcasting rules . 3 May 2023 . Ofcom . en.
  23. Web site: Sherwin . Adam . 6 March 2023 . First Ofcom GB News sanction over 'harmful' vaccine claims won't be the last, critics say . 3 May 2023 . inews.co.uk . en.
  24. News: Esports platform MPL raises fresh funds at $2.3 billion valuation . 17 October 2021 . . 15 September 2021.
  25. News: Abrar . Peerzada . Gaming start-up Mobile Premier League valued at $2.3 bn, joins unicorn club . 17 October 2021 . . 16 September 2021.
  26. Web site: 29 November 2017. UAE firms help women back to work after childbirth. 2 February 2021. The National. en.
  27. Web site: London. Ellen Agler in New York and Warren Lancaster in. 16 December 2014. Pills, philanthropy and parasitic worms. 19 January 2021. the Guardian. en.
  28. Web site: Programs That Stay The Same, Fail The Same . Jack . Andrew . 18 April 2017 . Financial Times . 24 April 2018.
  29. Web site: Second Chance (formerly Speed School). 19 January 2021. WISE. en-US.
  30. Web site: internationalednews. 12 December 2018. Accelerating Learning in Africa: The Expansion and Adaptations of Second Chance (Part 1). 19 January 2021. International Education News. en.
  31. Web site: Research projects : Centre for International Education. 19 January 2021. www.sussex.ac.uk. en.
  32. Web site: Diaries from the Frontline: COVID-19 and Education Inequality: Who Is Most at Risk of Being Left Behind?. 19 January 2021. Center For Global Development. en.
  33. Web site: Educate: A Charity Exhibition, Benefiting the Luminos Fund . 11 February 2020 . Christie's . 3 November 2020.
  34. Web site: The END Fund . Devex . 25 April 2018.
  35. Web site: Philanthropy: the search for the best way to give . Barasa . Louise Makau . 19 August 2015 . Geneva Global . 11 November 2015.
  36. Web site: Strides in progress on Neglected Tropical Diseases as global partners meet . Cheney . Catherine . 18 April 2017 . Devex . 25 April 2018.
  37. Web site: Philanthropy: the search for the best way to give . Jack . Andrew . 11 July 2018 . Financial Times . 2 August 2019.
  38. Web site: Neglected Tropical Diseases . 11 July 2018 . House of Lords Hansards . 1 August 2019.
  39. Web site: Legatum Foundation helping community-based organisations thrive. 14 February 2021. gulfnews.com. en.
  40. Web site: Foundation. Clinton. 17 July 2018. 13 Photos From the Front Lines of Impact. 2 February 2021. Medium. en.
  41. Web site: The Freedom Fund: Galvanizing Resources to End Slavery . Clinton Foundation . 25 April 2018.
  42. Web site: Philanthropy's Bid to End Slavery in the Modern Age . Lindsay . Drew . 6 July 2015 . Philanthropy . 25 April 2018.
  43. Web site: internationalednews. 12 December 2018. Accelerating Learning in Africa: The Expansion and Adaptations of Second Chance (Part 1). 2 February 2021. International Education News. en.
  44. Web site: 11 October 2012. NGOs from India and Nepal make an exposure visit to red light areas. 2 February 2021. Nepal24Hours.com - Integration Through Media ....!. en.
  45. Web site: Dubai: M.I.T. Center for Developing Countries . Dugger . Celia W. . 18 September 2007 . New York Times . 10 November 2015.
  46. Web site: Legatum Center for Development and Entrepreneurship Launches . Katz . Rob . 8 October 2008 . NextBillion . 10 November 2015.
  47. Web site: Legatum Fellowship . Legatum . 11 November 2015 . dead . https://web.archive.org/web/20151109141212/http://legatum.mit.edu/our-programs/fellowships . 9 November 2015 .
  48. Web site: 21 May 2008. School aims to seed the world with business sense. 2 February 2021. the Guardian. en.
  49. Web site: Legatum Fellows build on 10-year legacy of impact. 19 January 2021. MIT News Massachusetts Institute of Technology. en.
  50. Web site: Springer. Jon. MIT's Legatum Center Unleashes Entrepreneurs, Alters Thinking About Developing Countries. 19 January 2021. Forbes. en.
  51. Web site: 2013 Africa Awards for Entrepreneurship . 18 June 2013 . AWP Network . 10 November 2015.
  52. Web site: Mag. GBAF. MIT Legatum Center and Mastercard Foundation Select 10 African Startups as Finalists of the 2018 Zambezi Prize for Innovation in Financial Inclusion. 2 February 2021. en-GB.
  53. Web site: 2013 Africa Awards for Entrepreneurship . 7 September 2013 . OFA . 11 November 2015 . dead . https://web.archive.org/web/20160423120830/http://www.opportunitiesforafricans.com/2013-africa-awards-for-entrepreneurship/ . 23 April 2016 .
  54. Web site: From Brainstorm: Our new $1 million prize, and more . Kirkpatrick . David . 25 July 2015 . Fortune Magazine . 22 March 2018.
  55. Web site: Centre for Entrepreneurs . elitebusinessmagazine.co.uk . 18 April 2021.
  56. Web site: About LI . Legatum Institute . 4 November 2012 . dead . https://web.archive.org/web/20121111033530/http://www.li.com/about/about-li . 11 November 2012 .

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