The department...

1. makes investments into Operational Subsidiary/Group Companies and
2. advises clients who may be foreign or local investors looking for opportunities or local entrepreneurs seeking to raise long-term capital

Transactions and Private Equity Investments

Access Capital:

• Takes controlling stakes, turns around the businesses and then manages them well. This could include businesses that have run into trouble with banks and others. In some cases, we may save them from closing
• Sets up and runs new businesses for identified business opportunities
• Advises on funds and other investments on behalf of overseas investors wishing to enter the Ethiopian venture capital market.

The Transactions team is headed by Winta Yohannes (Vice President - Investments). It sources new transactions and negotiates, structures, finances and does due diligence and other studies related to the acquisition, as well as successfully implementing the acquisitions.

Process, systems and governance are key to the success of Private Equity Transactions. AC is developing transaction models appropriate to local conditions, such as deficiency in audited or other reliable information. The team screens a large number of investments to find a few interesting prospects, and for the selection we use project criteria and screens, such as minimum payback period. A deal should only be finalized once AC’s Investment Team/Committee is satisfied with the results of due diligence studies.

AC assigns a team of 1 Associate (Senior Analyst) and 1 Junior Analyst (or as required) to each transaction. The team gets support from AC Research, including any sector specialists, or external sector specialists.

Corporate Advisory

This section's main objectives are:

• To help businesses raise long-term finance for expansion. The advisory service includes: strategic, restructuring and other advice to businesses, helping them to prepare financing proposals and present these to investors, supported by AC's economic analysis and other background. The financing instruments may include equity and/or debt securities.
• To advise investors looking for productive investments, including market studies, due diligence, transaction support, etc. For a remote investor wishing to set up an active business, AC could supply management support through the Group Companies Management team. AC is already working with many medium-scale investors, particularly foreign investors, and performs corporate consulting, for instance in restructuring, strategy, etc. International interest in investing into Ethiopia has increased dramatically in the last six months and AC has supporting several investors from the US, UK, Middle and Far East to channel their investments into productive opportunities.

Liquidity Creation

A key reason why long-term equity investments in Ethiopia may not be attractive to savers is that so far the securities have been illiquid. Access Capital is ready to buy back its own shares and those of its investee companies from investors wishing to sell and can also assist buyers looking for shares.