Our primary focus is equity investments and the key objective is to develop a diverse investment portfolio which provides attractive risk adjusted returns and is well suited for today’s economic climate.
There are three main strands to our current investment strategy:
- First, we look to acquire controlling interests in established small or medium-sized companies within the Middle East, North Africa, USA and Europe; with an acceptable minimum trading profit (EBITDA) and an immediate need for growth capital. Targets must have market positions, distinctive products or services and a sustainable value proposition. We also look for industry growth drivers that are fundamental and compelling and strong management teams with a clear business strategy exhibiting multiple avenues for growth and market share augmentation.
- Second, we seek out opportunities for direct investment in stable, asset-rich industries with high-quality cash flow generation and lower business risk characteristics and which make sense in the prevailing economic climate. We generally target asset classes with a relatively low risk profile and steady cash-flow generation which would offer high potential yield and the opportunity for capital gain on exit. We tend to work with lead partners who enjoy a high standing in their respective industries.
- Third, despite the fact that the real estate sector is an important one, we have decided not to be totally focused on this sector. Instead we look for selective investments in the sector mainly within the MENA region where we will usually partner with a leading developer. We target opportunities where the markets are sound, the yields are strong and/or the potential for capital growth is high. Although our focus or preference might be for the MENA region, we are not however committed to any one region or market sector: as always, our investment decisions are guided solely by our assessment of their potential for reward matched against the associated risk profile.