PRIVATE EQUITY
Our private equity business-line focuses on the acquisition of controlling and relatively significant positions in private companies across Sub-Saharan Africa. It is also part of SMC’s long term objective to acquire controlling and/or influential equity stakes in publicly-quoted companies within Sub-Saharan Africa.
Our target return is about 35% year-on-year. We do not operate investments directly; we create value through active board participation and providing the necessary capital to drive sustainable and profitable business growth. In publicly-quoted companies, it is SMC’s primary objective to leverage on its Private Equity expertise in managing investments and creating tangible value. In addition, SMC will invest in Fixed Income securities, as part of its broad mandate to manage and grow the liquidity of these companies.
Click here to find out more about our Private Equity Strategic Approach.
The Private Equity Strategic Approach:
SMC focuses on sectors with the following characteristics:
- • Large and growing regional and domestic markets that are principally targeted to private businesses and households;
- • Basic services and goods whose demand increases with purchasing power increases;
- • Services and products with a limited scope for imports substitution;
- • Sectors with sustainable competitive advantage, with high barriers to entry, not necessarily replicable by simply adding capital;
- • Sectors with a competitive pricing power that allows for price increases with economic inflation;
- • Sectors with a stable regulatory environment.
