Opening new routes for investorsAFRICAN FOOD FUND
objective Why invest in the silk AfricAn food fundthe silk African food fund is a luxembourg domiciledclosed end sicAr which aims to achieve an irr of • only African wide food fund: the silk African25% over the cycle of the fund by investing in the food fund is the only fund which aims to invest inAfrican food industry. food companies across 13 African countries. • Added value parts of food: fund will invest in theAfricA – the World’s most unknoWn value added part of the food value chain and will avoid commodity type investments like land.groWth story • unique African team: silk invest combines a unique team of experienced African professionalsthe emerging markets fdi magnet: foreign direct from 7 countries, an institutional set-up as a ukinvestments in Africa account for 9.1% of total flows regulated firm and on the ground presence in 4to emerging markets. Africa realized an annualized African countries.growth of fdi of 32% in the last 10 years. Asia’s • Private equity: the team targets an irr of 25%annualized growth rate was only 19%. main by leveraging its experience in managing foodcatalysts for this growth were m&A transactions and companies, entrepreneurship, consulting andinfrastructure investments. exiting. • Africa’s most attractive consumer theme: Africancapital: Private equity penetration in Africa is 0.18% food companies are growing by an annual rate ofwhile it is only 0.12% in Asia. African stock markets 18% and the roe of listed food companies is 50%are not as developed as Asia’s but they already make higher than other sectors.up 9% of the s&P emerging markets index and 15% • experience: investment managers have anof the s&P frontier markets index. average of 20 years investment experience and team includes Alexandre cantacuzene who hasProven growth resilience: African countries have worked 42 years for nestle in Africa and othershown a remarkable resilience to the current economic regions.downturn. gdP growth in 2010 will range across • established investment firm: silk invest is one of thethe west-east axis from 5.0% in nigeria to 7.0% in top investment houses in pan-African listed equitiesethiopia and will range across the south-north axis and has created a separate private equity teamfrom 9.8% in Angola to 4.5% in egypt. key drivers for to become among the leading players in Africa’sthis growth are: private equity industry.• 400 million new consumers since 1989 and 800 million more are coming. Population has grown from 625 million in 1989 to over 1 billion. this investment strAtegy growth will continue and Africa’s population is expected to reach 1.8 billion in 2050. silk invest believes that investing in successful African• increasing purchasing power has resulted in a food companies and helping them to further scale up thriving middle class. Africa’s average gdP per is the best investment strategy. company will acquire capita (PPP) increased from $1.5k in 1999 to strategic minority stakes and will actively manage $2.5k in 2009 and is expected by the imf to its investments by working closely with existing further increase to $3.1k in 2014. management teams. its investment process is built• improving institutions have allowed various around six steps: African countries to become more stable and better governed. According to transparency international, 38 African countries are today less corrupt than russia. somalia is as much an exception in today’s Africa as is Afghanistan an exception in Asia.
team intends to implement its investment strategy • investment strategy: silk invest intendsby leveraging its local presence and adding value to help company to build a newthrough: manufacturing site and to develop a more• Active deal sourcing – company is actively effective distribution strategy. sourcing its own transactions and regularly • target irr: 36% with trade sale as most meeting potential target companies. it does not likely exit route. rely on external brokers to identify opportunities • dairy kenya and uses its platform with 7 African nationals in • description: jv between Asian food the team. conglomerate and kenyan entrepreneur.• effective investment valuation and execution – firm is among leading milk producers in team has established track record in analyzing east Africa with production sies in uganda investments and structuring transactions. most and kenya. team members have hands on experience in the • investment strategy: silk invest intends to food industry and all have experience in due support company to identify new partners diligence, valuation and business planning. An to expand its operations and will support essential part of each transaction will be execution the company in redefining its brand. and exit strategy. Accounting, investment banking • target irr: 43% with listing as a potential and consulting skills will help the team to realize exit. this. • Water nigeria• Active post-acquisition management – investment • description: leading player in the home/ companies will be mainly supported in better office delivery (hod) segment of the structuring their operations, strengthening their market. the company has its own branded brand, extending their distribution coverage, water and hod system. most of its clients procurement of machinery, increasing their are in lagos. capacity, expanding to in other African countries, • investment strategy: team intends to improving corporate governance and preparing accelerate the growth of this company them for exit. Among others the investment and help it to capture more quickly market companies will benefit from the team’s experience share in all major nigerian cities. in managing food companies and from its • target irr: 38% successful track record in growing businesses. • ice morocco• exit – silk invest has a global network of partners • description: the “häagen-dazs” of in both the financial and food industry. this will morocco with restaurants in all major greatly facilitate exit through a trade sale or an cities built around high quality ice cream iPo. A number of team members have successfully and cafe products. company also services created exits in Africa and other emerging the retail supermarkets. markets. • investment strategy: team intends to help the company to further grow its retailinvestment PiPeline presence and establish operations outside morocco. • target irr: 37%.the silk African food fund intends to invest across13 African countries and build a diversified portfolioof food companies across sectors and regions. the investment committee & teAminvestment team intends to invest in the first year inghana, nigeria, egypt, kenya, ethiopia and morocco. the silk African food fund is managed by an investmentPotential investment opportunities are currently committee which has final say on the appropriatenessscreened and examples of potential investments are: of each investment and an investment team which• biscuits ethiopia executes the investment strategy of the fund. members • description: company produces sweet of the investment committee and investment team will biscuits for the domestic market in ethiopia work together in the post-acquisition management of and was set up in 1997 by a family investment companies. which has businesses in various African countries.
investment committee investment teAm Zin bekkali is ceo and founder Waseem khan is the head of the of silk invest. Zin bekkali investment team and has over previously held various senior 20 years of experience in asset positions at fortis investments management and private equity and ing investments. he started investments. he has worked in his career at dutch food retailer senior roles at sovereign wealthAhold and also worked for strategy consultant bain. funds (AdiA & kiA) and at leading global banks suchZin lived in morocco and has a strong network across as Well fargo, citigroup and rbs.Africa. nigel bannerman has over heinz hockmann is chairman 20 years of experience in and co-founder of silk invest entrepreneurial ventures and ltd. heinz has over 30 years corporate finance in Africa and experience in the industry europe. he has set up different and previously headed the food ventures in West Africa asset management business and has worked previously for deutsche bank, cAlof commerzbank. he was also actively involved in merchant bank in ghana and PWc.setting up the first east european food fund. jamil Akhundov has a successful Alexandre cantacuzène is a track record in entrepreneurship, 42 year veteran of nestlé who finance, and private equity in managed nestlé operations in eurasia and Africa. he started different African countries, set up his career in the poultry industry their middle eastern operations. and founded the first specialised he has lived in different African corporate finance boutique in Azerbaijan. he hascountries and has done business in almost every single worked for merrill lynch, morgan stanley and ebrd.African country. Patrick landi has extensive murray White is an international experience of emerging market award winning advertising investments in the private equity, and branding specialist. his listed equity and debt markets. clients have included coke he worked among others for Abn cola, cadbury schweppes and Amro, hsbc, eXotiX and fortis. mercedes. he previously worked Patrick has lived throughout various African countries.for young & rubican, and springer & jacoby. laolu Alabi worked previously francisco miranda has over as a research and investment 20 years experience in the analyst focused on sub-saharan private equity and venture Africa, at standard bank capital industry in europe and nigeria and ibtc. he has in- Africa. he has invested in and depth understanding of Africa’s managed over 25 firms in retail, listed food companies.pharmaceuticals and tmt sector. bridie laplace has private Ari- pekka hilden has over 20 equity and corporate finance years experience in investing in experience in eastern and horn emerging markets and private of Africa. she worked previously equity. Ari-pekka was the lead for ProPArco, the french dfi, investor at varma, the large and got involved in agribusiness finnish pension fund, where he projects. bridie has lived in various African countries.led their move into emerging markets.
united kingdom 4 lombard st. london ec3v 9hd Opening new routes for investorsimPortAnt notice south AfricA 37 kingfisher dr.this document is not directed at you if silk invest is 0240 hartebeespoortprohibited by any law of any jurisdiction from making theinformation on this document available to you, and is notintended for any use, which would be contrary to local egyPtlaw or regulation. 24 iskandar Al-Akbar st. 11341 heliopolice, cairothis document is being distributed, only to and is directedonly at persons who have professional experience inmatters relating to investments falling within paragraph 19 netherlAndsof the financial services and markets Act 2000 (financial Prinses beatrixlaan 614Promotion) order 2001 (all such person together being 2595 bm the haguereferred as “relevant persons”).this document does not constitute or form part of,and should not be construed as, an offer, invitation orinducement to purchase or subscribe for securities nor toenter in any contract for the provision of investment services,nor shall it be relied upon in connection with any suchtransaction.every effort has been made to ensure the accuracy of thefinancial information herein but it is based on unauditedfigures so may not be accurate. Past performance is not aguarantee of future performance. the price of shares cango down as well as up and may be affected by changesin rates of exchange. An investor may not get back theamount invested.this document has been issued and approved bysilk invest limited, lombard street 4, london, ec3v 9hd.silk invest limited is a limited company registered inengland and Wales. registered company number:6603042. Authorized and regulated by the financialservices Authority, 25 the north colonnade, canaryWharf, london, e14 5hs.subscriPtion informAtionfor more information please contactbaldwin berges,mail: email@example.com: +44 207 933 8610online: www.silkinvest.com