Minority Long Term Investor
Amethis invests minority stakes in promising local and family-owned African mid-cap companies to support them as they become national or regional champions. Amethis’ average ticket spans between USD 15 to 35 m, with an exit strategy within 5 to 8 years. Amethis’ wide network of co-investors allows a greater scale of investment, when required by the company. Amethis can also provide long-term debt at competitive rates for similar ticket sizes.
Amethis is a conservative investor, using little leverage to strengthen its portfolio companies’ resiliency, while capitalizing on their strong potential to maximize their long-term value.
Sector and Geographical Diversification
Amethis invests in sectors benefiting from the development of Africa’s growing urban middle class of consumers, targeting sectors such as financial services, agri-business, manufacturing, services and consumer goods. These sectors have the common trait to be growing fast while still being fragmented, offering the opportunity for new local leaders to emerge.
Amethis invests in Africa’s most dynamic and diversified economies, targeting those with a large domestic market and growing consumption. Because we believe diversification is the key to a sustainably profitable portfolio, we have invested in more than six countries to date – Côte d’Ivoire, Ghana, Nigeria, Kenya, Zimbabwe and Mauritius – and we continue to expand this geographical footprint.
Proprietary Deal Flow
Amethis favors proprietary deals to processed ones. We value the strong relationships we have tied with African entrepreneurs. The Continent’s best opportunities are often the less publicized ones. Most of our portfolio companies have trusted us as a strong financial partner with whom they share an ambitious long-term vision and a culture of efficient execution.
As a dedicated minority investor, we also support our portfolio companies in their growth and expansion strategy. We put our entrepreneurial spirit and our network of industry experts, corporate partners and co-investors at their service to optimize their sustainable value creation: we actively support them in the identification and execution of acquisition opportunities, we participate in the improvement of their governance and we help them implement strategic partnerships to expand their market and geographic boundaries.
Predefined Exit Routes
Amethis’ exit strategy is always predefined: established in partnership with a company’s existing shareholders and management. The exit strategy (examples include management buy-out, trade sale to a strategic investor and IPO) is designed to be beneficial to all of the company’s stakeholders.
Doing Well while Doing Good
Amethis considers that most African risks, challenges and opportunities are strongly related to social and environmental considerations: employment and demographic growth, overexploitation of natural resources, sanitary risks… This is why we promote international standards in environmental and social management (IFC Performance Standards, ILO guidelines), but also governance, compliance and financial best practices with our portfolio companies.
Amethis is also a signatory of UN Principles for Responsible Investment (UNPRI) since July 2013