The strategy of AFI’s Direct Investments is to invest in high quality companies with strong management teams that can deliver compelling financial returns over a medium to long term horizon. We look to invest in both income-generating assets that produce recurring revenue as well as growth-oriented assets that produce significant capital appreciation upon exit. We are able to invest at all levels of a company’s capital structure, include equity, hybrid / mezzanine and debt, and only within a Shariah compliant framework.
In equity investments, we typically focus on acquiring controlling or significant minority investments, with board representation. We will consider direct investments that are local, regional or global as long as the opportunity meets our rigid criteria. We have a diverse investment portfolio and will consider investments in a broad range of sectors, including financial institutions, industrials, consumer / retail, healthcare, education, real estate and oil & gas. Our team has a unique combination of international and local investment experience, allowing us to apply best-in-class practices within a regional framework in all phases of the investment cycle, from acquisition to portfolio management, and ultimately to exit.
We look at the investment cycle as one seamless process – ongoing portfolio management and the ultimate exit are considered upfront during the acquisition phase. Our rigorous investment screening process is focused on identifying those opportunities that fit with AFI’s long term investment strategy. We conduct a thorough review of all aspects of a business, including strategic, operational and financial to assess the current status and future prospects of the company. We also work to rigorously identify all potential risks and plan the steps required to mitigate them. Finally, it is critical that there is an alignment of vision between AFI, the other shareholders and management on the future direction of the company.