Emerging Capital Partners Investment Strategy and ESG Focus

Emerging Capital Partners has a unique investment strategy that sets it apart from other private equity firms. They focus on investing in high-growth companies in emerging markets.

Their investment strategy is built around identifying and partnering with exceptional entrepreneurs and management teams. This approach allows them to tap into the local expertise and market knowledge that is essential for success in emerging markets.

With a strong focus on ESG (Environmental, Social, and Governance) factors, Emerging Capital Partners prioritizes responsible and sustainable investing. They believe that this approach not only benefits the environment and society but also leads to better long-term investment returns.

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Emerging Capital Partners (ECP) has a clear approach to investing in Africa's growing markets. They focus on sectors that will benefit from long-term demographic and economic shifts.

ECP invests in consumer goods, financial services, telecommunications, and infrastructure sectors, which have shown significant growth potential in Africa. They've already made investments in companies like rubber and sugar producers, restaurant chains, and power and water utilities.

ECP is particularly active in West and East Africa, with offices in Abidjan, Côte d'Ivoire, Nairobi, Kenya, and Johannesburg, South Africa. These locations allow them to cover Africa's major hub economies effectively.

PE Assets are typically acquired through leveraged buyouts, where a significant portion of the purchase price is financed with debt.

The average debt-to-equity ratio in PE-backed deals is around 3:1.

PE firms often target companies with strong cash flows, which can be used to service debt and fund growth initiatives.

Companies with high EBITDA margins, such as those in the consumer staples sector, are particularly attractive to PE firms.

In 2020, the consumer staples sector accounted for 14% of all PE deals.

PE firms typically hold onto their portfolio companies for 4-6 years before exiting through a sale or IPO.

The average IRR for PE firms is around 15-20%.

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ECP focuses on investments in sectors that benefit from Africa's growth, particularly in consumer goods, financial services, telecommunications, and infrastructure.

They've made investments in rubber and sugar companies, restaurant chains, power and water utilities, banks, telecoms towers, and PayTV.

ECP operates from three offices on the continent: Francophone West Africa (Abidjan, Côte d'Ivoire), East Africa (Nairobi, Kenya), and Southern Africa (Johannesburg, South Africa).

Here are the hub economies ECP covers from these offices:

Emerging Capital Partners has a strong commitment to Environmental, Social, and Governance (ESG) practices. They signed the United Nations Principles for Responsible Investment (UNPRI) in May 2010, a framework for investment professionals who believe ESG issues affect investment portfolios.

This move demonstrates ECP's dedication to sustainable approaches in the investment process. They aim to integrate ESG factors into their investment decision-making.

In October 2011, ECP became the first private equity firm to sign a co-operation agreement with the International Finance Corporation (IFC) to participate in its Private Equity Africa Climate Change Investment Support (PEACCHIS) program. The program is designed to enhance sustainability best practices in Africa, which ECP has actively engaged with.

By partnering with the IFC, ECP has shown its willingness to collaborate on initiatives that promote sustainable development.

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