Elevating Returns, Enriching Communities:
Investment Strategy
At Lefa Asset Managers Africa, we understand that discovering the perfect investment opportunity involves crafting tailored solutions that fit seamlessly into your portfolio. Our expertise lies in constructing bespoke investment strategies and selecting meticulously chosen opportunities to help investors meet their objectives. From primary investments to secondary offerings, co-investments, and custom-managed accounts, we provide a comprehensive range of options, ensuring access to diverse opportunities in the private equity landscape.
STRATEGY & APPROACH
Our Private Equity team believes in partnering with management teams and entrepreneurs to build successful businesses across our targeted investment industries. As an investment thesis, we look for and back businesses that demonstrate the following key fundamentals.
Investing in businesses with strong management teams, where management teams are invested and aligned with our overall interests.
Businesses that offer products and services that are needs and not wants in the economy and command a certain level of price determination.
Investments that are highly cash generative in order to make distributions that can deliver 40-60% of capital back within a 5-vear period.
Investments with a track record of solid “through-the-cycle” performance within their respective sectors.
Investments that are scalable and can vield 25% gross IRR in 5-7 years, in line with industry standards;
Businesses with a history of profitability.
A strong focus on gender-lens investing with the aim of empowering women across all levels in the workplace.
Investments within critical regional sectors that drive sustainable growth.
Businesses that do not breach basic ESG ethics and principles such as good corporate citizenry, fair labour practices and sustainable environmental practices.
INVESTMENT PROCESS
We have seamless and well-established Investment Processes in delivering our investment philosophy. This process involves the following:
1. DEAL SCREENING
- Idea generation;
- Deal origination;
- Deal screening and preliminary analysis;
- Prospective new deals presentation, discussion, and selection; and
- Expression of interest
- Non-Binding Indicative Offer
2. PRELIMINARY INVESTMENT MEMORANDUM
- Preliminary Investment Memo
- Initial IC approval
- Valuation, Negotiation and Deal Structuring
3. DUE DILIGENCE
- Appointment of DD service providers
- Physical DD execution
- Commercial and Legal
4. INVESTMENT COMMITTEE
- Final IC approval
- Proceed to Legals
5. LEGAL AGREEMENTS
- Enter into legals
- Competition Commission Submission
6. MANAGEMENT AND VALUE CREATION
- 100-day plan
- ESG plan
- Value creation