Investment Approach

Key Investment Principles

Must-have criteria for target companies:
  • Outstanding incumbent management teams with local expertise, with possible augmentation by new hires
  • Reputable entrepreneurs and co-investment partners
  • Backed by entrepreneur co-investments (for early-stage venture projects)
  • Have a clearly-defined positive economic and social impact
We consider investment opportunities that feature the following:
  • Clear, pre-identified opportunities for improved performance and growth (top-line growth and margin improvement)
  • Appropriate post-transaction capital structure, high interest coverage ratios (if auxiliary debt financing is used)
  • Clear governance and control, operational and financial transparency; low opportunities for internal corruption
  • Alignment of interests between entrepreneurs/managers, Brightmore Capital and its investors
  • Ability to scale locally and grow to become “regional champions”, establishing sizable market share in their industries
  • Economic and social impact can be measured in accordance to established frameworks (GIIRS, GIIN IRIS, etc.)

Deal Sourcing and Pipeline

Proprietary deal sourcing, driven by deep and reliable networks across West Africa along with a full-time local presence in the region
Consistent and disciplined practice in investment selection:
  • Intensive and disciplined focus on thorough due diligence: review of business models, market forecasts, profit projections, cost basis, operating risks, potential investment impact, and management team backgrounds
  • Processes of systematic deal valuation and capitalization structure creation
  • Controlled investment decision-making process by the investment committee
Value-oriented investment philosophy:
  • Invest at attractive valuations corresponding to target company’s growth potential
  • Pursue a wide range of transaction types in pursuit of the most attractive risk/reward characteristics
  • Leverage structuring experience to bridge valuation expectation gaps, provide downside protection, and provide multiple exit alternatives
We employ a consultative approach focused on demonstrating how Brightmore Capital can add value in order to establish it as the preferred investment partner

Pipeline