Investment Criteria

Ethemba Capital seeks to identify investee companies where we can significantly enhance value using our entrepreneurial skills, our knowledge of industry drivers, issues and trends affecting investee companies, our ability to work with management in developing the companies and our ability to deliver appropriate exit options.

We are typically interested in companies that exhibit one or a combination of the following characteristics:

• Have an enterprise value ranging from €50 million to €1 billion
• Are mature, cash-flow positive companies with strong fundamentals and substantial assets
• Enjoy a strong market position or have special niches as a result of licenses, know-how or geography
• Can take advantage of economic growth in their sector or geographic area or have other opportunities to increase their operating margins
  
• Have highly skilled and motivated management teams
• Operate in sectors that are not heavily regulated and that are well placed to benefit from economic and demographic trends, but where barriers to market entry are high and acquisitions are the main means of achieving market consolidation

Whilst we are seeking investments with strong fundamentals rather than a specific sector fit, there are certain sectors where Ethemba Capital has significant experience and a deep understanding of the business fundamentals and issues. These sectors, which often display attractive risk reward relationships, include:

• Pharmaceuticals and Healthcare
• Real Estate
• Infrastructure, Telecommunications and Utilities
• Industrial Services
• Retail and Leisure
• Consumer Goods / Retail and Related Activities
• Heavy Industry
  

Ethemba Capital funds are able to invest in a wide variety of transaction types including:

• leveraged buy-outs and buy-ins
• provision of development capital and equity release
• financial acquisitions
• turnaround situations
• public-to-private transactions