Investment

What We Invest In

At a high level, Agaciro Development Fund seeks to invest in market leaders or defensible niche players that generate economic impact including via export orientation or import substitution domestic value addition and employment creation.

What We Invest In (Equity)

We seek mid stage growth companies that seek growth capital within Rwanda and outside Rwanda. We also seek to partner with fund managers who have got established track records. We are looking for profitable cash generating companies that have the capacity of declaring and paying a dividend within the short to medium term.

We shy away from greenfield investments unless they are significantly derisked through offtake supply implementation. Companies which have got an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of at least Frw Frw 20 billion. We are looking for companies that have got strong management and governance practices with boards and audited financial statements.

Companies which have capacity to scale and crowd in other sources of capital outside of Agaciro Development. We look at companies that have been in operation for at least 3 years and should have been profitable for at least 2 of those 3 years, including the most recent year. Their EBITDA should be at least Frw 3 billion, generating a revenue of at least Frw 10 billion. The company should also be cash or near cash generative.

In terms of the ticket size, we look at an investment of about Frw 10 billion and the company should demonstrate the capacity to absorb it within one year. While there is no specific requirement in terms of the shareholding in companies we invest in, we need to have significant influence and oversight on the companies we invest in. As such, we look at tickets of at least 10% in the companies we invest in and a board representation in them. We are also able to invest through syndication and co-investment structures

What We Invest In (Debt)

Under fixed income of what we invest in:

High quality yielding assets with significant downside protection. We consider a margin above the debt service coverage ratio of at least 1.3 times, debt-to-EBITDA of a maximum of 3 times, a debt-to-equity ratio specific to the industry, cash flow generation capacity of the business and align the debt requirement to the generation of the business.

Companies that have earnings that are naturally hedged against US Dollar depreciation.

Public and Sovereign debt (Domestic and Offshore).

Supra nationals.

As Rwanda’s long term development focus sovereign wealth fund, Agaciro Development Fund seeks to execute commercially attractive investments that drive development in sectors aligned with National Strategy for Transformation 2 (NST 2).