Central Africa SME Fund
Investment Strategy
Central Africa SME Fund (CASF) is an investment fund investing in small and medium-sized enterprises (SMEs) in the Democratic Republic Congo (DRC) and the Central African Republic (CAR). The Fund believes in achieving sustainable economic development by encouraging entrepreneurship in the fast growing markets of DRC and CAR. Currently, many opportunities in these countries remain unexploited due to the lack of risk capital and support. The multiplier impact of such entrepreneurial endeavours creates jobs and income. The Central Africa SME Fund is a US$ 25m fund (target). 80% of the fund will be invested in DRC and 20% in CAR. It is expected to provide risk capital to ca. 45 companies with an investment size in the range of US$ 100k to max US$ 500k.
The Manager's investment strategy is to invest risk capital in sustainable growing companies in the DRC and CAR, thus generating attractive risk-adjusted returns to investors. This involves the creation of a balanced portfolio of income-generative and high-growth potential companies. In general, the Fund’s investments are made mostly through mezzanine or quasi equity instruments, including debt with profit sharing or a royalty scheme, preferred shares, convertible debt, or subordinated debt with warrants. Mezzanine financing offers the advantage of creating current income and cash flow through interest, while at the same time securing an upside equity potential.
Investment Strategy
Central Africa SME Fund (CASF) is an investment fund investing in small and medium-sized enterprises (SMEs) in the Democratic Republic Congo (DRC) and the Central African Republic (CAR). The Fund believes in achieving sustainable economic development by encouraging entrepreneurship in the fast growing markets of DRC and CAR. Currently, many opportunities in these countries remain unexploited due to the lack of risk capital and support. The multiplier impact of such entrepreneurial endeavours creates jobs and income. The Central Africa SME Fund is a US$ 25m fund (target). 80% of the fund will be invested in DRC and 20% in CAR. It is expected to provide risk capital to ca. 45 companies with an investment size in the range of US$ 100k to max US$ 500k.
The Manager's investment strategy is to invest risk capital in sustainable growing companies in the DRC and CAR, thus generating attractive risk-adjusted returns to investors. This involves the creation of a balanced portfolio of income-generative and high-growth potential companies. In general, the Fund’s investments are made mostly through mezzanine or quasi equity instruments, including debt with profit sharing or a royalty scheme, preferred shares, convertible debt, or subordinated debt with warrants. Mezzanine financing offers the advantage of creating current income and cash flow through interest, while at the same time securing an upside equity potential.