Investment Approach

INVESTMENT APPROACH

Investing alongside the principles of Risk, Return and Impact

INVESTMENT APPROACH

Investing in established medium-sized businesses operating in high growth sectors: Food, Climate, Health and Education

Our Approach

We bring a hands-on approach to value creation with a medium to long term horizon (5 to 6 years holding period), consistent with the real needs of mid-cap companies in East Africa.

We will typically invest between US$5M to US$1OM in capital per investment taking significant minority positions. We aim to build dedicated portfolios (10 to 12 investee companies) with inherent intangible competitive assets – regional presence, client focus, governance , brands and social impact you can trust.

The fund’s investments are primarily expected to constitute Equity or Quasi-Equity. One of the investment team’s core competency is to tailor and structure the instruments flexibly to match the stage of the company growth.

Inclusive Employment Opportunities

We actively screen for businesses with a track record of creating inclusive employment opportunities for women / youth and of serving customers in rural areas, with ability to expand regionally.

Adding Value

EG Capital is a hands-on investor focused on adding value to its portfolio companies by:

Strengthening local management teams where necessary
Enhancing corporate governance, financial reporting, and transparency
Aligning interests of all shareholders with management
Focusing on long term growth and business improvements

EG Capital will aim to exit its investments typically through self-liquidating structures, follow-on capital or trade sale.

INVESTMENT PROCESS

We employ robust investment processes, fund portfolio management and governance

Evidenced-based and data driven proprietary sourcing & selection process to improve decision making, and reduce investment bias.

Sourcing & Screening

EG Capital has developed a proprietary sourcing & screening process to select high growth, EBITDA positive businesses within the sectors / countries of the fund mandate with the potential to realize high measurable impact.

Due Diligence

Our robust due diligence & risk management processes (including ESG. impact SDG) help us determine buy-ratings’ during due diligence and negotiate valuations on each specific deals.

Closing

Closing Standardized closing documentation & process, including 100-day plan and gender and climate action plans.

Portfolio Management

Active special advisers and operating partners providing strategic, operational and leadership support to investees as well as improving gender equity / positive climate actions in the portfolio.

Exit

Aligned Interest with entrepreneurs while building value for either self-liquidating exits or trade sale to a strategic/other fund.

VALUE CREATION FRAMEWORK

EG Capital is an engaged investor driving value creation

Corporate Governance & Leadership:

Enhancing corporate governance, financial reporting, and transparency
Strengthening local management teams where necessary
Aligning interests of all shareholders with management

Impact, ESG risks, gender & climate actions:

Impact monitoring and management
ESG risk mitigation and improvements
Gender and climate actions
Impact verification and reporting (in line with SFDR regulation)

Operational improvements:

Financial controls
Operations
Marketing & sales
Additional financing

Other value creation drivers:

Business improvements
FX risk mitigation
Co-investments
Seeking local currency financing

Thematic Focus

Driving performance in returns and impact within our sectors

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Where We Invest

Investing in some of the world’s fastest growing regions

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EG CAPITAL

I Updates

A quarterly newsletter about trends shaping our sectors, and news about EG Capital