Geographic scope: Through research and experience, Kampani has identified focus countries that possess significant missing middle needs for which Kampani is prepared to make additional efforts to generate deals:
- Guinee Conakry
Kampani remains open to investments in other global south/ DAC countries, this merely represents a list of priority countries based on identified need.
Other eligible countries include:
- Burkina Faso
- DR Congo
- El Salvador
- Ivory Coast
- Sierra Leone
Target: a profitable business of a producer organisation, a joint-venture or other business model co-owned by producer organisations and other actors, or a project that envisions co-ownership between producer organisations and other actors. A privately owned business is also possible as long as a clear causal link can be substantiated between Kampani’s investment and an improved living standard of smallholder farmers.
Sector: agro/food, anywhere in the value chain, i.e. up- and downstream of the production and the production itself (e.g. business which produce, process, trade and/or market agro supply, farming products and its derivatives).
Portfolio Manager: Alterfin. Alterfin is an important operational partner of Kampani. For instance, it is Alterfin staff that carries out the due diligence and monitors financial transactions.
Social impact: by targeting the so-called “missing middle”, Kampani aims to increase the farmers’ income, improve their position in agricultural product chains, empower the farmer community as an actor in the value chain, contribute to the development of their communities, increase in local and regional food security, and contribute to the safeguarding of the planet.
Financing mechanisms: equity and quasi equity (such as subordinated loan). For some deals, a combination of these two instruments is the most appropriate.
Financial return: for Kampani to be financially viable, each investment needs to be profitable. This means that the investee itself needs to be profitable. The projected financial return of the investee should be around 10% pa (the appropriate expected financial return will vary in function of the used financing mechanism and the perceived risk).
Ticket size: Kampani’s investment will range from 100.000 to 500.000 EUR. The envisaged average ticket size is 300.000 EUR. If a follow-on investment is expected, the first investment can be as low as 50.000 EUR. Add-on investments can lead to a total exposure of up to 1M EUR.
Role in the governance: Kampani will require a mandate in the Board of the investee regardless of the financing mechanism. It will seek minority protections (or the equivalent via covenants in the loan agreement). For the equity deals, the envisaged exit scenario (including its timing) should be discussed and clear. The valuation methodology needs to be fixed beforehand. Kampani does not want to have an operational role.
Investment time horizon: up to 10 years
Deal sourcing: via Kampani’s NGO shareholders and a limited number of partners
Technical assistance: Kampani itself is not a TA provider. Kampani’s NGO-Shareholders and other partners provide the post-deal TA that may be required.