African Alliance Private Equity’s approach to investing can be described as ‘management-centric’ and is guided by:
- Quality of the management team – we need to know management is dynamic, energetic, financially committed and understands the ‘sweet spots’ of its business and industry.
- Nature of business or concept – prior to investing we ensure our in-depth understanding of the viability, robustness and growth prospects of any business within its industry.
- Pricing and prudent capital structure – our analysis of any investment opportunity is underpinned by rigorous due diligence and an intense focus on value. Although it is impossible to detail a precise formal investment process that will be slavishly followed in every investment, a disciplined process guides our assessment of potential investments:
- Initial review
- Full business review
- Presentation to Investment Committee
- Shareholder agreement
- Due diligence
- Transactional risk assessment
- Investment committee approval
- Post-transaction management