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