Damascus Capital is an experienced private capital investor whose team has a proven track record in investing in Africa. As the sole private equity investment firm in Uganda, Damascus Capital has a significant informational edge in a market with minimal data available, and exploits this arbitrage and its global experience, to produce exceptional returns for its investors.
The team invests medium-term Special Opportunities Funds and a long-term Growth Capital Fund.
Growth Capital Fund
Damascus focuses on growth capital investment opportunities in Uganda, driven by a consumer class with significant unmet demand. As an equity investor, Damascus focuses on investing in and unlocking the potential of SMEs in Uganda which it does not seek to operate directly, but rather create value by influencing strategic direction through active board participation and providing patient capital to drive sustainable profitable growth.
Damascus Capital is the ideal solution for high-performing SMEs in Uganda since:
- Uganda is an underserved funding market with no capital to finance and steer crème de la crème medium-sized businesses. This segment presents the greatest returns potential for investors, yet is a challenge to find and manage for non-resident investors. Savvy local investors are best-placed to solve SMEs’ most pressing challenges.
- Uganda is an uncrowded geography (from the capital perspective) with one of the world’s highest performing growth track records:
- As a stable democracy that has grown at an average of over 5% p.a. y-o-y for the last 2 decades, Uganda is an excellent opportunity for risk capital. More so, having discovered large reserves of oil that will make Uganda a global producer by 2014, and whose revenues will significantly increase these previously highly-diversified and non-commodity based growth rates, Uganda is ripe for investment.
- Uganda is an uncrowded investment destination: while over $1bn in private equity funds has been committed to invest in East Africa (in which Uganda is the 2nd destination of choice), there is no other private equity player resident or with offices in the country. Damascus is a first mover.
These conditions create an arbitrage for a resident, savvy and well-connected SME investor – with information on and relationships with the top-of-the-range SMEs in-country, an investor that can inject capital and expertise to restructure and prepare these firms for local and regional expansion.
Special Opportunities Funds
Damascus Capital supplements its core investment strategy (the Growth Capital Fund) with special opportunities investing that generates attractive risk-adjusted returns while providing solid capital protection. The investment team manages closed-end funds that employ an opportunistic investment philosophy and alternative investment strategies with a particular emphasis on arbitrage in the semi-efficient Ugandan capital market. Arbitrage opportunities employed in these funds include event-related special-situation investing, distressed opportunities, pre-M&A and pre-IPO bridge financings, and capital disjuncture and liquidity gap interventions. The special opportunities funds have a shorter investment period than the Growth Capital Fund.
For more information about these funds, contact us at firstname.lastname@example.org .