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Aureos Inception
Aureos Capital is a 50:50 joint venture between Norfund and CDC
Aureos is a leading private equity fund manager investing in the SME sector in emerging markets around the world
The Aureos Global Network
COSTA RICA
EL SALVADOR
LONDON
SOUTH AFRICA
NIGERIA
MOZAMBIQUEZIMBABWE
ZAMBIA
TANZANIAKENYA
SRI LANKA
MAURITIUS
GHANA
PAPUA NEW GUINEA
Over US$ 500m under management globally, with US$ 72m in EA (AEAF, ACACIA and FEDHA)
DOMINICANREPUBLIC
THAILAND
INDIA CHINA
VIETNAM
PHILLIPINES
AUSTRALIA
(PACIFIC ISLANDS)
UGANDA
SENEGAL
Our African PresenceClose to half our committed capital has been allocated for investment opportunities across Sub-Saharan Africa
Aureos East Africa Fund (US$ 40 million)
Target countries: Kenya, Tanzania, Uganda
Other countries: Ethiopia, Rwanda.
Aureos Southern Africa Fund (US$ 60 million)
Target countries: RSA, Zambia, Mozambique, Zimbabwe.
Other countries: Botswana, Namibia, Angola, Mauritius.
Aureos West Africa Fund (US$ 50 million)
Target countries: Nigeria, Ghana, Côte d’Ivoire, Senegal.Other countries: Mali, Gambia,
Benin, Togo, and other ECOWAS
Representative InvestmentsAureos has made a number of investments across in different sectors across the region
What is Private Equity “PE”
• PE is medium to long-term risk capital provided in return for an equity stake in potentially high growth unquoted companies
Sponsors Equity
Institutional equity capital
Quasi- equity Subordinated debt
Secured bank debt
PE fills the gap between sponsors injection of their own cash and bank debt. Risk capital packages often tend to be a blend of equity and debt
PE Around the world
• PE industry well established in the US and Europe with funds under management in excess of US$ 250 billion
• In 2004 according to EVCA, PE firms in Europe invested over US$ 50 billion into 10,000 potential high growth companies. The current European portfolio stands at over US$ 200 billion (at cost)
• Studies have found that PE backed companies tend to outperform their counterparts
Advantages of PE Funding
• Provision of Capital– PE investors provide medium to long term capital to facilitate growth and/
or enabling Management participation through buy outs/ buy ins.
• Improved corporate governance– PE investors help their investee companies transition from informally run
businesses to professionally managed organisations with the commensurate benefits of better management control and focus
• Access to third party capital– PE investors have extensive contacts with financiers to mobilise external
sources of capital for their Investees. Companies with PE investors attain the appropriate credibility to access the financial markets (debt or equity).
Experienced management teams with track record of success
Regional growth ambitions
Adherence to Aureos’ corporate governance standards
Alignment with AEAF on exit rights and shareholder protections
AEAF risk capital package includes blend of equity and debt
AEAF will commit between US$0.5 million to US$4 million of risk capital per investment
AEAF partners with experienced, successful management teams to build strong regional companies in East Africa
Aureos Investment Criteria
Aureos tends to invest in businesses with the following characteristics
AEAF Target Transaction Type
Expansion of profitable businesses, often regional
Working with large family groups to hive off and institutionalise independent business units
Industry consolidations / mergers & acquisitions
Change of control transactions Management Buy Outs (MBOs) Management Buy Ins (MBIs)
Co-investment opportunities with strategic investors
Expansion / MBO transactions are most preferred deal types
Why Aureos?
Partnering philosophy
Strong track record of private equity transactions in East Africa
Focus on helping skilled managers build world-class companies
On ground local presence
Backed by a blue-chip investor base
Provide more than just Capital