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