Zeder / Athena Capital

Report
NOT FOR PUBLICATION OR DISTRIBUTION
Introduction
Countries visited by
Athena Team
•
Athena Capital was established in 2003
•
Founded by Jonathan Heinamann and Tom Priday, chaired by Tom
Boardman
•
Based in Cape Town, Johannesburg and London
•
Team of 7 professionals, including 4 CA’s
•
Financial advisory business raising debt and equity finance
•
Facilitated private equity transactions for SMEs
•
Sole investment advisor to investment company seeking opportunities in
sub-Saharan Africa
•
Current and past investment portfolio includes assets in the renewable
energy, commodities, infrastructure and packaging sectors.
1
Africa is Now
“The first skill you need
to do Business in Africa is
to see the Opportunities“
Christo Wiese Pepkor Chairman
E & Y –African attractiveness Survey 2011
PEACAP Investments is positioned to convert Africa’s opportunities into superior returns
4
Opportunities
“So the point really [...] is
not whether you should
be doing business in
Africa, but rather how.”
Leslie Rance, British American Tobacco (E &
Y –African attractiveness Survey 2011)
PEACAP Investments converts opportunities in Sub-Saharan Africa into returns to
investors by:
• Enabling small and medium enterprises to capitalise on expanding consumer
base and disposable incomes
• Leveraging the northwards expansion of successful Southern African businesses
• Supplying sectors which benefit from government and DFI support
• Partnering with skilled operators in high growth markets
Telecommunications FMCG Retail
14
16
Countries
Countries
Brewing
15
Countries
Retail Banking
17
Countries
Clothing Retail
13
Countries
Fast Food
7
Countries
5
Investment Strategy
“Investment prospects in
Africa are favourable right
now. Africa is the last
uncharted territory on the
investor's
Maintain map and
operations
opportunities
abound.”
in Africa
Invest in Africa
Early Stage Opportunities
Mid-market Growth
Opportunities
Strategic Opportunities
Invest in businesses where there are
few or no potential acquisition targets
in attractive or under-served industries
or geographies
Majority
positions
in
existing,
successful businesses that present
opportunities to leverage our resources
and skills to drive growth
Minority positions in large investments
where Athena Capital identifies
significant value but which exceed our
investment mandate
Value Drivers
Rationale
Sub-Saharan expansion
opportunities
• Leverage established platform companies to access high growth subSaharan markets
• Partner with skilled operators to execute the Company’s strategy
Services to high growth sectors
• Benefit from direct exposure to growth sectors (e.g., resource extraction
and infrastructure development) without investing in underlying riskier
operations
• Favour preferred sectors including manufacturing and processing, retail
and consumer goods, agri-business and food processing, financial services
and renewables and water
Consolidation and integration
opportunities
• Extract value through revenue growth and cost synergies
• De-risk investments by reducing customer and geographic concentration
and controlling supply chains
Underlying asset value
• Reduce capital at risk by targeting businesses with explicit or inherent
underlying value
Defendable barriers to entry
• Achieve sustainably higher margins with lower market risk
• Provide expansion opportunities and attractive exit options
Source: Olaf Meyer, African Development Bank
Not invest in Africa
9
Agribusiness Considerations
•
Investment horizons and alignment of interests – equity provider vs
operator
•
Primary production
•
Greenfield vs Brownfield
•
Capturing the agribusiness value chain
•
Local market dynamics and Country dynamics
•
Import Substitution vs Export Production
•
Land rights
•
Local relationships and access to agribusiness skills
•
Platform / Holding Co approach vs Direct Investment
•
Lack of visibility on investment returns
9
What are we looking for?
•
Agribusiness expertise
•
Investment opportunities - $3m - $20m (R25m – R150m)
•
SA and SSA focus
•
Local relationships
14
C o n t a c t D e t a I l s:
Cape Town
Johannesburg
London
2nd Floor, Bridge House
Boundary Terraces
1 Mariendahl Lane
Newlands
7700
2nd Floor, North Tower
3 Sandown Valley Crescent
Sandton
2196
14 Cork Street
London
W1S 3NS
Phone: +27 (0) 21 657 3810
Phone: +27 (0) 11 217 4800
Phone: +44 (0)207 408 7089

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