Investment Criteria

ACORN AFRICA FUND:

Targeted Fund Size
Targeted fund size US$250m.

Fund Terms
10 year initial fund term with possible extensions.

Targeted Companies
The fund invests in mid-cap businesses with a scalable business position, capability set or product portfolio in Sub-Saharan African countries.

Investment Size
Investment size in the range of US$10m – US$40m.

Investment Period
5 year investment period from first close.

Industries
The fund will focus on basic consumer goods and services, such as investments in food production and processing, utilities, healthcare, education, building materials, consumer goods, financial services, waste management and aims to preclude capital-intensive industries such as primary agriculture, mining and real estate.

Geography
Sub-Saharan Africa, maximum 30% in a single country, maximum 40% in South Africa.

Qualitative Considerations
Given AcornĀ“s emphasis on partnership with management, we only consider investments where we believe this partnership is likely to succeed. This includes partnering with competent and honest management teams and ensuring that they have equity ownership in their respective companies. Furthermore, our investee companies must have easily understandable business models, robust financial health and a clear competitive advantage. Growth prospects must be present in investee companies as well as the ability to create jobs and positively impact the communities and environment in which they operate.