Brightmore Capital utilizes a variety of structuring mechanisms to achieve downside protection while maintaining upside potential.
Low capital risk while maintaining meaningful upside participation
Where appropriate, use quasi-equity instruments and equity-linked instruments with conversion rights
Can potentially generate returns comparable to those of equity given scarcity of alternative financing sources for companies in Africa
Structuring management incentives to ensure alignment with Brightmore Capital
Competitive performance based compensation
Institute stock option plans and tie-ins for senior management
We insist on investment participation from all key project stakeholders.
Post-Investment Value Creation
Create tangible operational value-add for each project invested
Identify additional value creation opportunities (i.e. beyond initial business plans) during the due diligence phase
Work with management to develop and implement detailed financial, operational, and strategic plans
Agree on key performance indicators (KPIs) in collaboration with management
Ensure organization is optimally structured, address any balance sheet inefficiencies, and reinforce management team
Structure business operations to generate positive economic and social impact
Set impact targets for each investment made and structure activities for their realization
Define a set of specific performance metrics against which to track investment impact, in conjunction with commonly-used benchmarks (e.g. GIIRS, GIIN IRIS)
Ensure portfolio companies benefit from our regional network of business and governmental connections
Leverage presence, experience and network to assist companies in growing into adjacent markets
Build market-leading and professionally operated businesses that achieve significant scale to attract strategic players increasingly interested in establishing or broadening their African presence
Multiple Exit Opportunities
An increasing number of both local and international strategic buyers have expressed interest in the region
Recent sales of PE-backed companies to strategic buyers (1)
As more capital has been raised in the region, sales to financial buyers are becoming more common
Rising economic interest in the African continuant by foreign investors