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Angola Capital Partners

Angola Capital Partners

Angola Capital Partners

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    • Português
    • English
    • About Us
    • Team
    • Investment Approach
      • Triple Bottom Line
      • Strategy and Criteria
      • Value Addition
      • Investment Procedures
    • Impact
    • Funds
    • Contacts and Recruitment
    Angola Capital Partners

    Investment Approach

    Home » Investment Approach

    The Triple Bottom Line

    Our commitment to developing sustainable enterprises is based on achieving positive results in three core metrics:

    Financial Viability

    Sustainable companies must be financially viable and, over time, must generate a profit. This is important because as companies grow and become more profitable, their development effects tend to increase. They hire more staff, for example, increase their engagement with suppliers and distributors, and produce more goods and services.

    Governance and Integrity

    Sustainable companies are characterized by a high degree of business integrity and good corporate governance. They have clear processes and clear organizational structures, such as a board of directors. Sound governance helps companies to be stronger, more efficient and more accountable, to mitigate risks, and to safeguard against mis-management. Robust anti-corruption measures and practices are needed because corruption is costly and risky. Good governance and integrity help companies to attract the investment and capital they need to facilitate further growth.

    Sound Environmental
    and Social Performance

    The companies in which we invest are required to have sound environmental and social practices. They must also comply with recognized international environmental and social standards, as well as national legislation and regulations. In many countries, rules and regulations protecting employees, the environment and the rights of vulnerable groups are poorly enforced.

    Our approach to investment is therefore based upon sound investment practices with the goal of growing our investments, to contribute more significantly to Angola’s sustainable development.

    Strategy and Criteria

    Our investment strategy allows us to create value for our stakeholders by carefully selecting investments of the appropriate size and which offer growth over the short and medium-term time horizon.

    Investment Strategy

    Investment Type

    Expansion

    Management
    Buy-Outs & Buy-Ins

    Privatization

    Industry Target

    Diversified

    Investment Size

    Up to USD 8 million per deal

    Additional scope for co-investors when applicable
    (priority to LP’s)

    Financial Instruments

    Equity

    Mezzanine

    Debt

    Shareholder Involvement

    Between 10% and 49%, including minority rights

    Board of Directors role

    Exit

    Maturity between 3 and 5 years

     

    Our investment criteria are based on key principles that we believe form the basis for successful companies. These principles assist in mitigating risks associated with private equity investment and are reflected below:

     

    Investment Criteria

    Good Governance
    Clear Competitive Advantage
    Willingness to Work Closely with an Equity Partner
    Strong and Committed Management Teams with Industry-Specific Expertise
    Solid Business with Good Growth Potential to Become National and Regional Players

    Value Addition

    ACP’s value addition to our investee companies goes beyond the capital of our investment funds and is threefold: providing capital, exercising financial discipline and providing long-term commitment and institutional capacity building. ACP’s team, with its extensive experience, capability and capacity, work closely with management to provide support on key strategic decisions.

     

    These key areas of involvement and experience include:

    • Corporate finance;
    • Management reporting and financial control;
    • Corporate strategy;
    • Marketing;
    • Human capital management and development;
    • Corporate governance, reporting and transparency; and
    • Long-term equity partnerships.

     

     

    Financing instruments offered to companies include equity capital, shareholder loans, convertible loans and other mezzanine instruments. Due to its strong national and international network, ACP is also able to identify other financial institutions to co-finance sound projects.

     

    Investment Procedures

    Investment Procedures

    We follow a strict investment process that mitigates risks that are associated with our investment opportunities. Our obligations and commitments with regard to ESG integration in our investment process are set out in our Social and Environmental Management System (SEMS) manual. We evaluate ESG risks of potential investee companies through an assessment of sector and company specific impacts. ESG considerations are also used to gain an understanding of how ESG risks and opportunities could influence the financial and strategic value of an investment.

    We consider the specific risks of each sector, such as regulatory/ legal requirements and material issues, and identify areas for value addition. We develop and implement a documented corrective action plan for closing ESG gaps in instances of non-conformity, and implemente structured systems for proactively managing the ESG aspects of operations. We require that all our investe companies and business partner companies comply with all applicable local and national laws and international best practice governing ESG performance. It is also importante to note that there are certain types of investments that we will not finance, as per the IFC Exclusion List. We are committed to investing responsibly and seeking opportunities for sector-specific, ESG-focused value creation. Accordingly, we embrace the concept of materiality. In our view, the principle of materiality – defining the social and environmental aspects that matter most to our business and stakeholders – is a strategic business tool, with implications beyond corporate responsibility or sustainability reporting.

    What are our investment procedures?

    Screening of new
    opportunities

    • Business plan analysis
    • Copilance analysis with the fund’s investment guidelines

    Preliminary due diligence and transaction structuring

    • Business plan review
    • Business plan valuation
    • Promoters and management due diligence
    • Negotiation of the general terms and conditions of a potencial investment (term sheet)

    Final due
    diligence

    • Final due diligence to validate assumptions underlying the information provided for analysis

    Final negotiation and transaction closing

    • Final negotiation of the investment terms
    • Legal documentation
    • Binding investment agreement

    Monitoring
    and exit

    • Business development monitering
    • Board of directors role
    • Presence in key decision making processes
    • Preparation of the divestment / exit process

    * Investment committee approval (I.C.)

    What should you include in your business plan?

    Executive Summary
    • What are your exepctations for the Fund’s role as investor?
    Company
    • How it started?
    • Where you are and where do you want to go?
    Product and Services
    • What are you selling?
    • What differentiates your product from competitors?
    Market Analysis
    • What are the industry dynamics?
    • Who are the main customers and competitors?
    Marketing Plan
    • What is yor marketing mix plan?
    Operational Plan
    • How are operations executed?
    • What are the operational key variables?
    Financials
    • Historicals and projected financials
    • P&B, BS, cash flow statments
    • Financing requirements
    Management
    • Who are the core managers?
    • What is their experience and incentives?
    Angola Capital Partners

    Representation Office

    Academia BAI, Avenida Pedro de Castro Van-Dunem Loy,
    Bloco C, 1º Andar Direito - Morro Bento, Luanda - Angola

    (+244) 227 281 000 (ext. 4048)
    (Landline local call)

    contactos@angolacapitalpartners.com

    Explore Our Website

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      • Triple Bottom Line
      • Strategy and Criteria
      • Value Addition
      • Investment Procedures
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