Investment Philosophy

  • Selectivity: We are highly selective in our choice of investments, applying equal attention to meeting investment business criteria and to alignment with vision and values.
  • Value: We have a relentless focus on identifying, building and unlocking value in our investment activities.
  • Long-term: We stand by our partners with well-thought-out strategies through the ups and downs of the business cycle.
  • Sustainability: We believe that what is good for the planet and for people, is good for business.
  • Active: We are an active partner, intent on adding value at strategic and operational levels where the opportunity arises. We draw on both in-house and associated specialist capabilities to do this.
  • Partnership: Ours is a partnership ethos aligned with risk and reward, in a transparent and high-trust relationship with investees and investors.

Focus Sectors

  • Food & agribusiness
  • Household goods manufacturing & distribution
  • Transport & logistics
  • Specialised financial services
  • Media & e-commerce
  • Industrial services
  • Healthcare
  • Private education

OPPORTUNITIES DO NOT ADD UP IN GROWTH SECTORS – THEY MULTIPLY

Investment parameters

  • Nature of transactions: business expansion and consolidation (‘buy-and-build’), corporate restructuring, delisting, MBO’s
  • Preferred equity position: 25% – 75%
  • Prudential limit: normally will not provide more than 75% of the business’s expansion capital required
  • Minimum investment amount: USD 5m with exceptions in unique circumstances
  • Investment view of 7-10 years in the case of fund investments, longer in the case of proprietary investments
  • We are open to syndication and co-investment

Investment criteria

We pay attention to the extent to which potential investee companies meet the following criteria:

  • Business track record – profitability, cash flow, balance sheet
  • Sufficiency of forward cash flows
  • Attractive growth prospects including regional, cross-border scalability
  • Competent management who share in the investment risk
  • Sustainable competitive advantage
  • Export performance / potential
  • Quality of corporate governance
  • Attractive entry values and good exit potential
  • Sustainability in terms of social and environmental impacts

Investment process

  • Initial contact leads to a two-page information requirement
  • After the initial information exchange, a Term Sheet is agreed between the parties
  • Should an in-principle decision be taken to engage, a substantive due diligence process is undertaken by the EXEO investment team. This usually takes 12-16 weeks