Acorn’s team members have historically applied specific business principles in private equity investments that have contributed to exceptional returns and consistent outperformance of most of their competitors. Acorn will apply similar principles to the investments of Acorn Africa Fund and Acorn Agri.
These principles include:
- Allowing management teams within Portfolio Companies to acquire shareholding in the companies they manage. This better aligns management to the goals of all the shareholders and also serves as the strongest motivation for management to improve their business’ performance in the medium to long-term.
- Focusing on growing and profitable sectors.
- Investing in profitable enterprises that are operating in growth sectors in Southern Africa allows for substantial organic growth without the need to apply aggressive restructuring or cost-cutting policies to the current operations
- Ensuring that strong, dynamic and innovative managers run the daily operations of the Portfolio Companies.
- Ensuring that a strong and proactive Board of Directors is able to provide insight and guidance to the managers.
- Focusing on businesses with significant scalability.
- Being price sensitive and not entering into a transaction if the pricing isn´t right.
This all allows for significant growth and exceptional returns for investors.