Africa has a lot of investment opportunities. From Tech start-ups to companies already rooted in the ground, Africa is now catching up to other continents and too many analysts even surpassing them. But investing in a continent that is new to investors won’t exactly be easy

As technological and digital advancements dominate the world currently all eligible parties must take part in the new trend. 

There are a lot of start-ups with innovative ideas that want to grow and become relevant, companies with expansion or acquiring plans, or companies just seeking funds to move their company to the next stage and they all have one thing in common. They are all seeking funds, investors willing to invest their money in a company in the hopes that it will grow and yield returns fo at a future date.

But Private Equity firms and venture capitalists alike can’t and won’t just invest in any company that seems appealing without conducting thorough research on the company in on its geographical location because all these and more determine whether the risk of investing in a company no matter how profitable it is, is worth it.

It at this stage that the Shikana Group comes in, providing advisory services that allow purchasing a stake at a company easy and also in the event of trying to exit, provides creative strategic ways to sell the company.

Private Equity

Private equity is the kind of investment that happens outside the public stock market. It is a way through which investors could get part or complete ownership of the companies. 

Here, eligible investors (because private equity firms are mostly traditional and as such tend to have high minimum investments), invest money through a private equity firm. 

This money is pulled together in a pool of money which is then invested in different private equity interests like venture capital and buyouts. When a business is losing out and needs a cash infusion, private equity is a way that can help. They would enter the business with new ideas and even managers who can move the company forward. 

Private equity firms look for worthy investments in all aspects of businesses and companies. They either purchase the company outright or buy a stake in the company. 

They manage the company and make any necessary improvements to it that can make it more valuable and then turn around and sell it for profit or public offering. 

It is worthy to note that private equity firms are mostly interested in companies that are very well off the ground with years of achievements and stabilities. Younger companies like start-ups in the early stages don’t fit well into the investment strategies that private equity provides.

Some Private Equity Firms

It shouldn’t come as a surprise that Africa is filled with lots of PE firms, that is not only stable but are also growing rather rapidly in achieving their goals and even scaling them.

In 2019, Africa recorded up to 3.8 billion in fundraising beating its previous year’s record of 2018, which has led to a surge in fundraising deals.  

And to further assert the level of growth occurring in Africa, it saw a rise in the influx of investments in its companies as fund managers raised as much as $1,1bn and reported about 81 deals that were worth a sum of $0.7bn just in the H1 of 2020. 

Some of these private equity firms include;

  • ARM – Harith Infrastructure Investment Managers 
  • FBN Quest Funds 
  • LeapFrog Investments 
  • Mediterranean Capital Partners 
  • Hlayisani Capital 
  • Black Silver Capital 
  • Lotus Capital Halal Investments 

Private Equities in Africa

Investing on its own is a very wide grass field that encompasses numerous opportunities and several ways to do it, be it buyouts or venture capital. And Africa, being a mine of such opportunities, is a relatively new untapped part of this field. 

And most especially now, that newer sectors are being developed and are blinking green lights to investors in Africa outside its shores

For every tourist destination, a tour guide is needed and in the sector that is private equity, Shikana Investment and Legal Advisory group provides the needed information that gets you straight to the best deals easy and fast.

To even begin making deals, assisting businesses and making long term profits, a private equity firm must first do its research on the area it is interested in, which is one of the key services Shikana investment and legal Advisory groups provides.

Africa is blessed with a lot of Private Equity firms right within is reach. And these firms are ready to invest in Africa’s opportunities. And so, for companies looking for that major push to become better or expand like a Series C funding, Shikana group is a company to approach, for they will match your company with the investor(s) that you need.

Focuses of Private Equity Firms in Africa

Some of the key focuses of private equity firms looking to invest in Africa are;

  • Investment/Deal Origination Services and Due Diligence

Those who have money meets those who need the money, but how?

Private equity firms have the financial resources to raise the value of a company and even save it from near extinction (if they think it wise) but even private equity firms don’t always have the right information about the companies they are interested in or even how to source for new deals.

Most times, these investment firms attempting to relieve the stress of sourcing for these deals themselves, contract deal sourcing specialists that are greatly experienced in handling the investment/deal sourcing process.

Handling and generating leads for investors happen to be a service the Shikana group provides. And just because finding leads isn’t enough, they conduct extensive and thorough due diligence on each potential leads before presenting them to the clients.

  • Funds and Capital Raising Services

Apart from private equity firms looking for valid and worthwhile companies to invest it, companies in need of financial assistance also seek investment firms who understand the company and where its company. 

Shikana group because of its vast network of capital connections, helps start-ups and already well established and grown business with easy access to angel investors and private equity. 

And when private companies buy their target company, restructured it and brought it to a valuable level, decide to sell the company in bits or otherwise, Shikana provides the service of creating easy exit routes, making the process of acquiring the company in the first place as easy as letting it go. 

  • Industry Research Services and Risk Management

Before any investor can enter the playing field that is Africa, they must first know what happens within the home of their target and how it can be advantageous or otherwise. 

And because the Shikana group has been on the field for many years, they have constant inside information on how the commercial and political landscape for which an investor’s target operates.

Investors would usually take their time and even expand more resources in trying to carry out such investigations in the geographical area like the rules, regulations, policies, field changes, how it will affect the clients and how best to navigate around it. 

But an investor through the Shikana group would gain access to services like investigations about an industry, government policies, monitoring of any competition, accessing potential partners and even provide the investor with a detailed analysis of the risks and opportunities.

  • Market Entry Services 

Yes, Africa’s vast field of opportunities would attract investors like private equity firms and venture capitalists alike especially in this age and time that seems to be favouring technological growth and development. 

But that’s just it. An investor might know what it seeks to achieve in Africa but how to achieve it might form a bit of a puzzle. This is where Shikana Group comes in. 

From choosing the best industry to invest in, the kind of products to push, how the flow of the market would affect the client to the cost of entering the market, Shikana Group helps you navigate through it by providing advisory services on the best strategies to adopt. 

Conclusion

Learning about diversified opportunities in Africa especially for private equity and venture capitalists is one thing but to navigate through it is another. That’s is why Shikana group offers advisory services which allow investors to walk into any industry in Africa with confidence, knowing they have the right tools and right information. 

Shikana being on the ground and having gathered a lot of years’ worth of market information and strategies, knows the market culture, the costs associated with entering the African market as well as knowing the local and international laws and how to navigate it best.

Their services not only impress the investors both creates an opportunity for a strong relationship that would lead to more clients –old and new investing in Africa which in turn leads to a widespread of opportunities for its citizens and an increase in Africa’s economic growth. 

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