Investment process

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:
  • Research
  • Initial review
  • Full business review
  • Valuation
  • Presentation to Investment Committee
  • Structuring
  • Shareholder agreement
  • Due diligence
  • Transactional risk assessment
  • Investment committee approval
  • Implementation
  • Post-transaction management