Investment philosophy
Deal sourcing and origination will be a primary function of the Fund’s knowledge of target countries within Sub-Saharan Africa; targeting substantial economies and those with high growth prospects in four regional blocks (South, East, Central and West) whilst high risk/reward countries warrant further investigation (“the Region”). In addition, the Fund will align with contacts developed over several years of investing experience in Africa. Within the Region the Fund will focus on sectors benefiting from the African emerging middle class such as Telecoms & Media, Financial Institutions & Services, Power, Infrastructure & Real estate, Agriculture and Agro-Industries and Retail & manufacturing.
As a basic tenant, the Fund shall focus on borrowers showing profitability or positive cash flow with high revenue growth projected. The borrowers will need to show strong management capabilities with a proven track record of delivery and have a strong, or even a dominant market position.
In-house research and dedicated team resources and focus are key competitive advantages of the Fund. In identifying investment opportunities, the Fund will generally apply a detailed analysis of the legal and economic trends in target industry sectors within the region to understand the attractiveness and fit of opportunities and deal specifics that may arise because of privatisations, changes in regulations or any other market dynamics.
The Fund will utilise an investment strategy based on a robust approach to risk management in order to balance the preservation of investor capital with the objective of delivering target returns to investors.
Investment Process
The Fund will enable a disciplined investment approach with the following salient features:
