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Investment Criteria

7-21 Capital Group specializes in strategic equity investments and debt in lower mid-market, high-growth companies across three sectors—consumer products, insurance/financial services, and healthcare—in high growth countries of East Africa. The sector of focus varies by country depending on the nature of the opportunity and our competitive position. 7-21 Capital Group uses a hands-on intensive partnership model that helps drive scale, substantive changes, and cash flow improvements. Partner companies have revenues up to US$100 million and focus on manufacturing, consumer goods, and business or industrial services.

INVESTMENT CRITERIA

  • Revenue of US$2 to US$100 million

  • Up to US$5 million of EBITDA

  • Primary revenue-generation in East Africa

  • Strong competitive position with differentiated products and services that play an important role in consumers’ everyday lives

  • Strong cash flow characteristics or potential

INDUSTRY EXPERIENCE

  • Consumer Staples

  • Healthcare

  • Real Estate

  • Education

  • Insurance 

  • Financial Services

OPERATING PROFILE

  • Differentiated products or services

  • Attractive gross margins

  • Distinctive competitive advantages in business model

  • Conservative approach to capital structure

  • History of (or opportunity for) strong and predictable free cash flow

  • Enhanced value through brand, distribution or operational improvements

TRANSACTION TYPES

  • LBO, MBO, and corporate carve-outs

  • Liquidity for closely-held companies

  • Growth capital/equity

7-21 Capital Group does not invest in start-ups, heavily linked government businesses, or investments that require a passive partner.

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