Non-listed / Private equity investments
Private equity investment involves investing in running businesses that are not listed on the Zimbabwe Stock Exchange. These may be public companies, private companies, partnerships or sole proprietorships.
Our service in this area involves identifying suitable candidates for equity participation. Cognisant of the higher risk factors associated with such investments, Adway Financial Services ensures that investors are aware of the higher risk profile, and nature of private equity investment, particularly as it relates to Zimbabwe.
We then work on minimising such risk through ensuring that investee companies have at least the minimum corporate governance frameworks necessary to safeguard investors. Such safeguards include the following:
- Ensuring the business is properly registered, licensed and compliant with all applicable regulations.
- Ensuring the business has adequate business systems to account for and control its activities.
- Setting up a board of directors and advisors to enable the business to grow.
- Formulating a solid corporate governance framework for the business, which includes having external audits, appropriate board committees, board meetings and ensuring the business is not unduly influenced or adversely affected by founder shareholders.
- Providing ongoing monitoring services through board participation, and appointment of investor representatives into the senior management of the company.
While private equity investment is a relatively new phenomenon in Zimbabwe, Adway Financial Services is committed to ensuring that it becomes as established as stock market investment currently is, in order to widen investors' choice of investment.
If you would like to discuss private equity investment opportunities further, please contact us and we can arrange a free consultation.