Principal investments

Afro Capital is committed to building profitable, socially responsible enterprises that will maximize value for our shareholders.

With a funding gap estimated at one trillion dollars, African owned businesses are faced with funding challenges to grow their business.

Investment strategies

Focus

  • Sector Agnostic
  • 5% minimum ownership
  • Lower mid-market companies
  • Target revenues of minimum $200k

Diversified Portfolio

  • Sector diversification
  • USA, Canada, UK and Dubai
  • Equity and quasi-equity investment
  • Initial investment in brownfield transactions but progressively to include greenfield
  • 90% Diasporan businesses, 10% local African businesses

Deal Structuring and Due-Diligence

  • Information gathering
  • Due Diligence on the target and determination of value of the business
  • Engage site visit and management interviews

Negotiation and Completion

  • Complete final confirmatory due diligence
  • Deal Negotiation: Final negotiation and signing
  • Completion: Regulatory authorities' submission, clearance and closing documents

Active Investment Management (The Afro Capital Advantage)

  • Performance Monitoring: Introducing innovative management tools to better monitor financial perfromance
  • Proactively de-risking investment to encourage business growth

Exit

  • Management buyouts
  • Sales to Strategic & Financial Partners
  • Put or Share-buy back mechanism
  • IPOs