Kiriga Kunyiha

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Providing Private Equity Solutions
Kiriga Kunyiha Aureos East Africa 22nd March 2006
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Aureos Inception
Aureos Capital is a 5050 joint venture between
Norfund and CDC
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Aureos is a leading private equity fund manager
investing in the SME sector in emerging markets
around the world
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The Aureos Global Network
Over US 500m under management globally, with US
72m in EA (AEAF, ACACIA and FEDHA)
LONDON
DOMINICAN REPUBLIC
CHINA
INDIA
VIETNAM
EL SALVADOR
SENEGAL
SRI LANKA
PHILLIPINES
COSTA RICA
GHANA
UGANDA
NIGERIA
KENYA
THAILAND
TANZANIA
PAPUA NEW GUINEA
MAURITIUS
MOZAMBIQUE
ZAMBIA
ZIMBABWE
AUSTRALIA (PACIFIC ISLANDS)
SOUTH AFRICA
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Our African Presence
Close to half our committed capital has been
allocated for investment opportunities across
Sub-Saharan Africa
Aureos West Africa Fund (US 50 million) Target
countries Nigeria, Ghana, Côte dIvoire,
Senegal. Other countries Mali, Gambia, Benin,
Togo, and other ECOWAS
Aureos East Africa Fund (US 40 million) Target
countries Kenya, Tanzania, Uganda Other
countries Ethiopia, Rwanda.
Aureos Southern Africa Fund (US 60
million) Target countries RSA, Zambia,
Mozambique, Zimbabwe. Other countries Botswana,
Namibia, Angola, Mauritius.
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Representative Investments
Aureos has made a number of investments across in
different sectors across the region
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What is Private Equity PE

• PE is medium to long-term risk capital provided
  in return for an equity stake in potentially high
  growth unquoted companies

Sponsors Equity
Institutional equity capital
Quasi- equity
Subordinated debt
Secured bank debt
PE fills the gap between sponsors injection of
their own cash and bank debt. Risk capital
packages often tend to be a blend of equity and
debt
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PE Around the world

• PE industry well established in the US and Europe
  with funds under management in excess of US 250
  billion
• In 2004 according to EVCA, PE firms in Europe
  invested over US 50 billion into 10,000
  potential high growth companies. The current
  European portfolio stands at over US 200 billion
  (at cost)
• Studies have found that PE backed companies tend
  to outperform their counterparts

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Advantages of PE Funding

• Provision of Capital
• PE investors provide medium to long term capital
  to facilitate growth and/ or enabling Management
  participation through buy outs/ buy ins.
• Improved corporate governance
• PE investors help their investee companies
  transition from informally run businesses to
  professionally managed organisations with the
  commensurate benefits of better management
  control and focus
• Access to third party capital
• PE investors have extensive contacts with
  financiers to mobilise external sources of
  capital for their Investees.
• Companies with PE investors attain the
  appropriate credibility to access the financial
  markets (debt or equity).

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Aureos Investment Criteria
Aureos tends to invest in businesses with the
following characteristics

• Experienced management teams with track record of
  success
• Regional growth ambitions
• Adherence to Aureos corporate governance
  standards
• Alignment with AEAF on exit rights and
  shareholder protections
• AEAF risk capital package includes blend of
  equity and debt
• AEAF will commit between US0.5 million to US4
  million of risk capital per investment

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AEAF Target Transaction Type

• Expansion of profitable businesses, often
  regional
• Working with large family groups to hive off and
  institutionalise independent business units
• Industry consolidations / mergers acquisitions
• Change of control transactions
• Management Buy Outs (MBOs)
• Management Buy Ins (MBIs)
• Co-investment opportunities with strategic
  investors
• Expansion / MBO transactions are most preferred
  deal types

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Why Aureos?

• Partnering philosophy
• Strong track record of private equity
  transactions in East Africa
• Focus on helping skilled managers build
  world-class companies
• On ground local presence
• Backed by a blue-chip investor base

Provide more than just Capital
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