We raise long term capital from a wide range of investors to buy and transform businesses in order to create value for our stakeholders.
F&P was established in 2003 as part of the group specialising in private equity.
We look for opportunities which have been overlooked, actively seek out investments in sectors which may be out of favour and in businesses which have been under-managed or under-capitalised.
Our approach is long-term. We invest in time, money and expertise into transforming strategy, operations and finances of the businesses we acquire. We control and are actively involved in all our portfolio businesses.
About Private Equity
We create value for our stakeholders by acquiring, transforming and selling asset-backed businesses in selected industries across Sub-Saharan Africa.
We create superior returns by changing the strategy, operations and finances of our businesses to make them the best in class and leaders in their industry.
We focus on five key drivers to drive our businesses: Strategy; strengthening management; lowering cost of capital; developing through investments (capital expenditure) and acquiring and merging companies.
According to the World Bank survey ‘voices of the poor’, 70% of poor people believe that the best way to escape poverty is to find employment (‘voices of the poor’, The World Bank 2009). Given that some 90% of jobs in developing countries are in the private sector (World Bank, 2005), F&P is focused on helping businesses in this sector grow.
We look for opportunities created by global trends: We study macro trends closely to discover opportunities overlooked and find new solutions to existing problems and more profitable approaches to the running of businesses. The sectors we focus on are:
- Growing domestic and regional market
- Goods and services whose demand will increase with purchasing power
- Core industries with limited scope for import substitution.
How We Invest
We have a range of investment tools we use to get capital to where it is most needed to include amongst others:
- Direct Equity Investments – Where we target businesses with high potential for growth; and
- Debt investments – Where we target frontier markets
We will only get involved if we can add value to an existing business. Our judgement is based on our detailed analysis and research, and our view most often is different from the views of the existing management team and those of the bidders. The five ways we look to create value in our portfolio businesses are:
- Transforming Strategy
- Strengthening Management
- Developing through investments (capital expenditure)
- Acquiring and Merging companies and
- Lowering cost of capital.
We work with existing management to create and maximise value with our long term investment in time, money and expertise to transform our businesses into world class performers in their particular industries.
Through our Transaction Skills, Legal, tax & structuring skills and Operational skills we are able to bring to bear a holistic approach to identifying and turning around our businesses.