Investment Criteria

Fund investment focus

The Fund’s investment focus is the middle market, and the investments are generally in midcap (as defined by valuations of between US$20M and US50M) companies whose business models have great potential but lack the resources to leverage their growth opportunity. The Fund provides the required hands-on support across the entire business including amongst other things, managerial, board level and governance support.

Ownership stakes

The Fund typically holds majority or significant minority ownership stakes in its investments.

Size of investment

The amounts of investments typically range between US$2M to US$15M. The investment is generally a combination of equity and structured debt and often is trenched over a period of time to allow management to reach milestones in their business models, triggering the release of further fund capital (including senior, mezzanine, etc.).

Stage of investment

The Fund focuses on established, growth phase companies who require expansion capital to fuel their business models.

The Fund does not typically focus on start-ups.

Geography

Sub-Saharan Africa;

Sectors

Allocated broadly as follows

1. Telecommunications,
2. Financial Services (specifically Consumer Finance),
3. Mining and Mining Services,
4. Retail and Consumer Goods,
5. Construction; and
6. Renewable energy

New growth platforms

1. Agri-business processing;
2. Renewable energy