Investment Strategy

Our initial rising market focus is on Sub-Saharan Africa.

Sub-Saharan Africa is now experiencing robust economic growth due to accelerating economic growth, positive demographic dynamics, rising consumer demand, a growing middle class, and an improved socio-political environment.

  • By 2050, Africa is projected to be a $29 trillion economy and bigger, in today’s money, than the United States and Europe combined, and is likely to replace China as the biggest contributor to the global workforce.
  • The African middle class is undergoing rapid expansion. By 2020, Africa is forecast to have 128 million households with discretionary income and $1.4 trillion in consumer spending.
  • Today, Africa has six of the 10 fastest growing economies in the world, over one billion people, 60% of the world’s uncultivated agricultural land, and growing democracy.

Additionally, the relative lack of private equity capital committed to Africa points to the potential for successfully managed private equity funds to succeed on the back of positive macroeconomic fundamentals and a rapidly improving business landscape.

Target Sectors

Agribusiness
Africa’s significant endowment of underutilized arable land, coupled with Africa’s – and the world’s – increased demand for agricultural products, creates investment opportunities in the agribusiness sector, including establishing businesses further up in the value chain such as in storage and distribution, manufacturing and consumer products.

Consumer
The emerging middle class consumer sector is an important focus area for us, allowing us to benefit from Sub-Saharan Africa’s continued path of growth and private consumption.

Logistics
With a limited, and generally expensive, supply of transportation, storage and other logistics solutions, we believe there is a growing demand for logistics-related solutions across Sub-Saharan Africa.

Manufacturing
Sub-Saharan Africa’s low-cost labor markets, coupled with the projected increase in demand of manufactured goods, provides investment opportunities in the manufacturing sector.

Other
We believe the financial services, healthcare, education, Technology, Media & Telecommunications (TMT), and business services industries all present investment opportunities, and will evaluate such opportunities.

Target Countries

The initial countries that we have targeted for investment are among Sub-Saharan Africa’s fastest growing, and ones that we believe have positive future economic and political indicators.  Our investments will be anchored around the cities of Johannesburg, South Africa, Nairobi, Kenya and Lagos, Nigeria.