Managing Growth In Central Asia
The Venture Growth Strategy
Avanta Capital is very focused on investing into companies and sectors where we can add value. We have over the past ten years developed a ‘Buy & Build’ strategy that is sensitive to the emerging markets we are focused on.
Investment in privately-held operating companies (can also be a purchase of existing shareholder holdings to provide founder liquidity).
Company may be founder owned and operated with little to no prior investment.
Innovation is not usually a key element of the investment decision (the innovation has been proven at this stage)
Our sectors are much broader than traditional venture capital
Invested capital should be used for growing revenues (sales and marketing), additional product development and scaling the business.
Majority control required for all investments, to ensure safety of capital.
No leverage used in the investment transaction
Investment size can be from $250,000 to tens of millions of dollars.
Companies should have proven revenues ($500,000 or more).
Companies should be cash flow positive or trending that way.
Low risk of company failure.
Investment returns due to growth in revenue and cash flows.
Exits include sales to a strategic or financial buyer, or via an MBO
IT / Fintech
The management of Avanta Capital have a long history in the IT Sector with their first business NambaMEDIA being created 15 years ago, since that time we have developed business is a number of IT Sectors and now with NambaPAY we have moved firmly into the Fintech Sector with our own Mobile Payment Technology.
The IT/Fintech division of Avanta Capital is managed through our incubator business TechFARM.
Avanta Capital invests into the Food processing Sector as well as the Food Export Business. Our Agricultural activities are focused in Kyrgyzstan where we have invested in Beef production and wool, this has been done due to the GSP+ status of the Kyrgyz Republic which applies zero duty on exported goods to UK, Europe and the US.
Education & hEALTHCARE
Avanta Capital commits a minimum of 20% of its portfolio to Education and Healthcare, these sectors are critical in the development of the region and cannot be ignored by any investment firm who are serious about this region.
This is a sector that is very well understood by this region, being so close to China and the OBOR Initiative, the opportunity for the development of the Logistics Sector is in our opinion a key to the regions growth. Avanta Capital has two large scale Logistics projects currently and sees this as a key growth sector in the region.
Due to Avanta Capital’s focus on the CIS we have strong relationships with China and the OBOR Initiative, the manufacturing and re-export opportunities in the region are a significant part of our activity. We have invested into production businesses in the region and we have a particular interest in Computer-aided manufacturing (CAM).
Even with a photovoltaic (PV) solar conversion efficiency rate of less than 10%, the total amount of solar irradiation received by the Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, is sufficient to generate 20 times more electricity than these countries currently generate.
There are currently 9 solar projects operating in Kazakhstan with a further 29 planned. Avanta Capital is actively investing into this sector, as a part of its renewable energy objectives.
REAL ESTATE (Commercial)
Avanta Capital operates a large number of businesses and in most cases it looks to acquire premises for those businesses to operate out of, in this way we can ensure our businesses have the correct premises to meet their needs and has a understanding and considerate landlord. We do invest into real estate that is over and above our direct needs, but these are not seen as core to our business and are only considered if a suitable opportunity arrises.