Strategic Orientations

FACRA’s strategic orientations, as defined by the Supervisory Board, include the following:

Main target sectors

FACRA is keen to explore investment opportunities across all sectors of the economy, except mining and mineral resource exploitation. As per the investment guidelines, FACRA will focus on the production of goods and services in Angola, in particular those companies in sectors where imports can be substituted by local joint ventures with Angolan entrepreneurs for the production of goods and services in Angola.

Investment size and stage of target companies

The Fund invests in start-up and early stage MSME companies with high growth potential. It shall not invest in seed capital nor in mature companies (considered ‘large companies’). It shall focus on the area of economic development diversification of the economy and support entrepreneurs.

FACRA is especially interested in investing in companies that have the capacity to create qualified employment within an innovative project.

FACRA’s involvement in portfolio companies

FACRA shall take minority stakes and shall not be involved in the daily management of the target companies. It will, however, help its management through active management and focus on good corporate governance, professionalization and formalization of the economy.

Additional strategic considerations

FACRA believes that the best managers create the best projects and the best outcomes. As part of the selection process, FACRA will focus on management teams that have a strong management track record and whose values are in alignment with the objectives of FACRA.

Organizations that are able to achieve market success are most likely to be those that find unique solutions as well as different products and services. FACRA is always looking to elevate degree of innovation of the companies that can form the basis for growth, and ultimately increase the value of the company at the exit stage. In many cases, the Fund will invest together with an Angolan entrepreneur and adapt the business case towards a concept that has shown success internationally, thus ‘tropicalizing’ successful foreign products or services in order to ensure success within Angola.

Exit strategy

The exit strategy shall be defined from the beginning, before the investment has been made. The length of the holding period will vary depending upon the economic and social impact objectives of the project. As a guide, the typical holding period is between three to five years.

Active management

The fund will focus on minority stakes for which FACRA’s management can provide additional value through a presence on the Board of Directors of each Portfolio Company. Examples of management support include helping to define strategic goals, financial structuring, international expansion and preparation for exit, among others.