For its private equity platform, Schulze Global’s focus is on making growth investments into existing companies. The firm looks for established teams who have demonstrated the vision and maturity to build solid, scalable businesses. After investment, Schulze Global’s team works hand-in-hand with these business people, providing technical and managerial support to ensure long-term success.

Strategy

Schulze Global targets companies that are among, or have the potential to quickly become, leaders in their respective industries. Schulze Global filters its private equity pipeline through an assessment of three “company-level” factors: (1) the quality and positioning of a business and its product/services versus local peers; (2) the capability and integrity of the business’s management team versus local norms; and finally (3) the growth velocity potential of a company versus the sector as a whole.

While Schulze Global generally avoids controlling interests, the firm takes a very “hands-on” minority shareholder approach – requiring strong protections and significant oversight mechanisms. Schulze Global will generally take board seats and engage deeply in the management of portfolio companies.

Deal Types

Generally, Schulze Global will consider the following deal types:

  • Minority investments into established companies seeking capital for expansion (organic or inorganic) and/or to increase operational efficiency.
  • Minority investments into new business ventures with established entrepreneurs in industries related to their business expertise.
  • Co-investments, for minority positions, alongside strategic/trade investors entering a country through acquisition of a local business.
  • On a very limited basis, control transactions, if a highly unique opportunity exists and a qualified management team has been identified.

Sectors

Schulze Global’s sector focus for its private equity activities flows directly from the secular trends that are rippling across all of its frontier markets:

  • Escalating Consumption: FMCG, Education, Healthcare, Hospitality, Financial Services, Retail.
  • Rise of Manufacturing: Light Manufacturing, Agriprocessing.
  • Expansion of Infrastructure: Building Materials, Construction Companies.

Funds

Ethiopia

In 2012 Schulze Global launched the Ethiopia Growth and Transformation Fund I (EGTF). The EGTF is the first-ever private equity fund devoted solely to Ethiopia; it invests in middle-market companies in this exciting and dynamic country with a population nearing 100 million people.

The fund’s investors include the Schulze family as well as leading development finance institutions, funds of funds, and family offices.

Mongolia

In 2016, Schulze Global launched the Schulze Mongolia Equity Fund (SMEF). SMEF deploys capital into companies across Mongolia that will benefit from the upturn in the country’s economy.

The fund’s investors include the Schulze family as well as other leading family offices.

Portfolio

National Cement is one of Ethiopia’s leading cement companies. Located in Dire Dawa, National Cement operates a 3000TPD state-of-the-art facility. National Cement prides itself on maintaining active compliance with the highest ESG standards, including in respect of the health and safety of its workforce. Ethiopia | Building Materials

Kaliti produces a variety of wheat-based food products and owns Cerealia, one of Ethiopia’s most well-know consumer brands. Kaliti maintains a large production center on the outskirts of Addis Ababa, with multiple biscuit and pasta lines and an extensive distribution network. Ethiopia | FMCG

Flipper International School is a leading international school in Ethiopia, focused on providing quality and affordable education to Ethiopia’s middle class. Flipper operates across multiple school campuses in Addis Ababa and its students have consistently scored in the top ranks in British standardized testing. Ethiopia | Private Education

Jalannera Coffee is a premium coffee roasting and export company based in Addis Ababa. Through its Tarara brand, Jalannera is a leading domestic and international supplier of premium coffee roasted in Ethiopia. Ethiopia | Agriprocessing

Sa-Med is the first producer of IV bags and related products in Ethiopia. Utilizing its GMP standard, state-of-the-art factory on the outskirts of Addis Ababa, Sa-Med is able to provide a high quality and cost effective alternative to imports of medical supplies. Ethiopia | Healthcare

Family Milk is a premium quality milk producer which is leading the modernization of Ethiopia’s dairy sector through its sourcing, processing, and distribution practices. The company produces pasteurized milk, cheese and other dairy products. Ethiopia | Agriprocessing

Origin Water is premium mineral water company that bottles mineral water straight from the source in its state-of-the-art facility outside of Addis Ababa. The company produces the highest quality mineral water in Ethiopia as measured by World Health Organization standards. Ethiopia | FMCG

Premium Concrete is a leading producer of ready-mix concrete in Mongolia. The company supplies high-grade concrete for large-scale construction projects throughout the country. Mongolia | Building Materials