Schulze Global’s primary focus is on making growth investments into existing companies. The firm looks for established managers who have demonstrated the vision and maturity to build solid, scalable businesses.  After investment, SGI’s team works hand-in-hand with these businesspeople, 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. SGI 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 SGI generally avoids controlling interests, the firm takes a very “hands-on” minority shareholder approach – requiring strong protections and significant oversight mechanisms. SGI will generally take board seats and engage deeply in the management of portfolio companies.

Deal Types

Generally, SGI 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.

Adding Value

SGI delivers much more than capital by working hand-in-hand with portfolio companies to provide financial, operational, and managerial support to ensure long-term success. Schulze Global seeks to maintain active engagement with its portfolio companies to achieve strategic, operational, and financial enhancements. The firm utilizes its board seats not only to monitor investments, but also to contribute directly to the companies’ success through the provision of expertise whenever and however feasible.

In addition, SGI leverages its global footprint and extensive network of international relationships to open new doors for portfolio companies.

Featured fund: Ethiopia

SGI has been investing in Ethiopia for a number of years. The firm sees tremendous potential in Ethiopia – a country that boasts a population of approximately 90 million people and one of the fastest GDP growth rates in Africa.

Building on its successful track-record in Ethiopia, in 2012 SGI launched the Ethiopia Growth and Transformation Fund I (EGTF).  The EGTF is the first-ever private equity fund devoted solely to Ethiopia.

The $100M fund is anchored by the Schulze family as well as some of the world’s leading development finance institutions.  These include the CDC Group out of the United Kingdom and DEG out of Germany. SGI operates the EGTF through its office in Ethiopia’s capital, Addis Ababa. The SGI Ethiopia office is staffed with professional team members who live and work full-time in the country.