Investment Approach

The Fund’s investment objective is to develop a balanced portfolio of investments to deliver our investors long-term superior returns.

The Fund provides equity and mezzanine investments to fast-growing companies in Kyrgyzstan to help them institutionalise and grow into large regional champions.

Sectors

The Fund focuses on two major themes:

1. Core sectors underpinned by strong domestic demand: consumer-oriented sectors such as food & beverage, healthcare, education and telecommunications. Within the core sectors, the investment team has a solid experience and investment track.

2. Export-driven sectors: Food and beverage, particularly dairy and meat processing, ecological agriculture, as well as sectors such as tourism, software and technology development and outsourcing services are well suited to harness the export potential into neighboring countries and take advantage of favorable trade laws.

 

Investment Criteria

 

Target companies have to be existing businesses in early stage or expansion mode. A highly selective investment process is applied to identify companies with the following characteristics:

High Business Quality
  • at least 3 years of existing operations and stable cash flow generation;
  • revenue >US$1,000,000 or EBITDA >US$200,000;
  • ambition to expand the operations internationally;
  • clear competitive advantage represented by leading market positions, strong branding, geographic leadership, high industry barriers and/or high returns on tangible capital;
  • operate in attractive and stable sectors with significant growth potential;
Strong & Ethical Management
  • a well-balanced management team with strong leadership;
  • clean reputation;
  • willingness to institutionalise and introduce corporate governance practices;
  • ownership structure/investment terms allowing control over cash flows;
Attractive valuation and transaction terms
  • entry multiples below industry averages;
  • potential to earn high IRR in USD with either structured exits or realistic exit route.