Strategies

Africa Public Debt

Enko’s Africa debt strategy was launched in 2016 and is managed by Alain Nkontchou. Since inception the strategy has won a multitude of awards for performance. The strategy seeks to source and structure returns from the opportunities that arise from a developing asset class (emerging market debt) and a frequently overlooked region (Africa).

Enko’s strategy invests in sovereign and corporate debt in hard and local currency across Africa (ex-South Africa). The strategy aims to generate strong risk-adjusted absolute returns by combining an Africa-specific analytical framework and macro and relative value strategies.

Africa Private Equity

Enko’s private equity strategy was launched in 2014 and is managed by Cyrille Nkontchou. The strategy identifies African mid-market growth companies compliant with Enko’s environmental and social private equity policy. The strategy aims to take minority stakes with an average holding period of 4-5 years. The exit strategy for each investment is either an IPO or SPAC on a local or international stock exchange, or a sale to a strategic buyer.

The team provides hands-on support to facilitate the expansion of the portfolio companies’ business and provides access to a wide network of contacts in Africa to assist them in reaching their growth targets. Using their networks, the team can assist portfolio companies through the introduction of deal opportunities, specialist staff appointments, and/or act as external advisors.

The strategy has made investments in Zambia, Nigeria, Côte d’Ivoire, Kenya, and Morocco, as its mandate spans most of the continent. These investments have been made in a range of sectors: finance, insurance, logistics, technology and telecom. The strategy also contributes to sustainability via the businesses it invests in for the benefit of Africa’s communities.

Enko’s private equity team recently completed the exit of its investment in Netis Holding: Netis Holding Exit Press Release – November 2023

Francophone Africa Debt and Equity

In 2018, Enko Capital West Africa (ECWA) was launched alongside the opening of Enko’s Abidjan office. ECWA is focused on debt and equity investments in the Francophone region. Enko is committed to expanding further into West Africa as it sees opportunities in the region across asset classes. Enko’s operations in West Africa also give the Group further insight into the region and a strong local presence.

In 2020, ECWA was awarded the mandate to manage a debt focused strategy on behalf of the pension fund of a West African bank. This strategy predominately focuses on local currency debt in the Francophone region. In the same year ECWA also launched a multi asset strategy. This is focused on both debt and equity in the Francophone region, with a full guarantee of capital.

Africa private debt

Enko is preparing to launch its private debt strategy. The team will originate and invest SDG-aligned, ESG/impact-focused, and Gender 2x-orientated growth capital into capital starved mid-market SMEs. The strategy will be executed through a variety of debt instruments including mezzanine finance and senior debt. Equity upsides through warrants, kickers, would feature across most transactions. The strategy is sector agnostic and will primarily focus on Sub-Saharan Africa.

Enko’s extension of its investment offerings into African private debt is the synthesis of its combination of experience, presence and tenure in the African private markets, public markets, and banking. Enko’s partners are all seasoned bankers and fund managers. Their networks are vast and provide them access to a wide range of professionals (legal, banking, investment, accounting, government, etc.) with a deep understanding of local markets, laws, regulations, opportunities, and individual economies.