Investement Approach

Strategy

With our strong partnerships with entrepreneurs and management teams, we aim to build successful businesses with strong foundations. We apply various private equity strategies in diverse industries while delivering risk-adjusted returns to our shareholders. We invest in companies at growth stage, late start-up phase, or on selected new companies. We apply a robust screening and filtering process, followed by thorough analyses of the macro and micro dynamics of the potential opportunity.

We aim to benefit from the deregulation of a number of sectors in Africa, the positive developments in the economy of the African continent, the increasing average incomes of individuals and the widening gap between the supply and demand of many goods and services.

Our approach is based on the following pillars:

Have a clear market positioning, competitive advantage and room for ​​future growth;

Achieve good results, decent profitability and / or positive future estimates;

Implement governance standards;

Have an effective and stable management team with vision and / or experienced
partners.

Sustain a promising exit scenario.

The above criteria apply to investments in new projects and companies, with a focus on fast-growing sectors with clear competitive advantages.

Focus

Our mandate is to invest in the fast-growing and promising economies of SSA, with the exception of countries facing political, economic turmoil or international sanctions.

We may also consider opportunities in Egypt, provided that the target company has an active presence, seeks to potentially expand, or has an export footprint in the Sub-Saharan region.

Our investment ticket size ranges from USD 3M to USD 10M, while seeking minority stakes of up to 49%. This enables us to play an active minority role, and to effectively participate in determining the direction of the investee company.

Sectors

We adopt an agnostic investment approach in selecting our investment opportunities. We give prime focus to defensive sectors due to their earnings stability and ability to withstand political downturns and negative economic cycles.
Excluded from our targeted sectors:

Capital-intensive projects, such as infrastructure projects, utilities, and public-private partnerships.

Investments that yield negative economic externalities, such as investments in tobacco, alcohol and arms industry.