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.
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:
|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|
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;
- 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.
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
Preliminary due diligence and transaction structuring
Final negotiation and transaction closing
* Investment committee approval (I.C.)
What should you include in your business plan?
|Product and Services|