D E Wasake, Principal, Inachee Limited

Basic Information

Target:

Established business

Sector focus:

Diverse. High growth, low competition primarily:

·         Financial services;

·         Telecommunincations;

·         Natural resources

Amounts provided:

Not readily known but about $1m- $6m

Funding type

Private Equity

Means, rather than providing a loan, the fund takes a % of shares. Usually a majority (51% and more) or a significant minority (25%-49%) of shares

Key criteria
  • Long term high growth sectors;
  • Transparency and corporate governance as ECP is registered with U.S Securities and Exchange Commission;
  • Audited financial statements for a number of years; usually last two.
  • Social and environmental impact; ECP is a signatory to UN’s Principles for Responsible Investment.

 

Further information

http://www.ecpinvestments.com/

 

Who is behind ECP?

ECP is a pan-African Private Equity firm with more than $1.8bn to invest in Africa. It has invested in over 40 countries. In Uganda past and current investments include Spencon International, Bank of Africa Group, Blue Financial Services and Celtel.

Its various funds have been backed by institutional investors including AIG, European Investment Bank (EIB), African Development Bank (EDB) and International Finance Corporation (IFC).

What is the process like?

It is not apparently clear from the website but it is expected that the process will be as follows:

  •  Contact ECP;
  • ECP conducts an extensive “due diligence process” of the target to ensure a good fit;
  • Deal concluded with ECP taking a majority or significant minority share, agreed targets and deal period (usually exit within 5 years)

·         ECP provides a dedicated team to help improve operational efficiencies and achieve targets agreed on. 

Our view/tips for success?

1. High growth sectors. ECP prefer companies that are already established and more likely already a market leader but need that extra support for long term growth. 

2. Build the team A key concern for any private Equity firm like ECP is the quality of the team to deliver high growth. Finding the right quality of persons is critical.

Otherwise, best of luck.

Disclaimer

Inachee is not an agent or connected to this entity, it is an independent thought leadership and advisory firm. The information provided is based on our research and experience. Whilst we have taken steps to ensure the accuracy of the information presented here, there can be no guarantee that it will remain accurate.