5-Year Growth Plan
Business Strategy Focus
- The company’s business strategy is to conduct its business in a professional manner within the context of good corporate governance and in accordance with the laws and regulations of the various regulatory bodies that it will be guided by, especially the security and Exchange Commission, Bank of Ghana and the National Insurance Commission to mention a
- The company will be run on this business and strategic plan for the next five years, within each year an annual operation budget will be developed as an excerpt of the 5-year business and strategic
- Project/investments businesses will be guided by the company operational manual for Private Equity funds and project/investments criteria and
- KCL fund management will involve the dealing with selected group of fund managers and sovereign backed funds who share the company’s value and drive to improve the equity-based capital financed infrastructural development in Ghana and the SSA.
The company will focus its operations in the segments of the private equity and venture capital operation for the development and finance of venture capital businesses and infrastructure projects in Ghana and the SSA region. The business of KCL is new and a unique business segment of private equity and venture capital business – with emphasis on infrastructure development within the geographical sphere of SSA region of Africa, where there will be competitive advantage. KCL is confident of maximizing the competitive edge in this segment by optimizing its quality of services; optimizing price premium; and the use of a strong local market knowledge in the project identification and financial structuring process.
The growth strategy is one of pursuing a penetration and expansion strategy. This is expected to be aimed at deepening the KCL’s current operations within the Ghanaian markets, then expanding into the markets of the countries in the ECOWAS region and finally to the rest of SSA region of Africa.
KCL plans to structure and define each and every deal as a unique and unequal transaction. KCL consider each deal to have its own specification and financial requirement, which will be different from each national Government’s project need, requirement and corresponding financial packaging. KCL also plans to deal with different project/investment financiers, who will be providing the matching project/investment financing packages, to meet KCL’s potential clients’ needs.
There will eventually be several products that will be developed and tailored to meet the needs and demand of KCL’s clients (i.e. both project/investment financiers and promoters). There will be a continuous strategy development plan to improve the mode of delivery of KCL’s products. As part of its growths strategy, a market expansion strategy is to be developed and employed.
KCL will build the necessary IT platform to support its strategies. KCL will link up all the operational sites by setting up a virtual private network (VPN) using satellite technology (or where necessary a mobile phone network) to provide wide area network coverage for all operational sites. KCL will maintain a continuous policy of upgrading its equipment, machinery and internet work system. It is anticipated that with the support and acceptance of the above by the partners of KCL (including the various national governments, financiers, and project developers), KCL will be able to conduct its businesses in a manner that is prudent, operationally efficient and profitable.
Investments in Private Equity
- KRON Capital is positioning itself to play the leading role in sub-Sahara Africa (SSA) focusing principally in the financing of venture capital businesses and infrastructure development and financing in partnership with Governments within the SSA sub-region and other private Equity Firms in the Middle East, Asia and the Advance d This will allow the undertaking of a wide range of wealth and asset management services, including investment and advisory services, wealth management, financing and banking services, as well as inheritance and succession planning for prospective investors in the fund.
- The needed project financing funds will be raised through the activities of the Company and its selected Associates in Ghana, the rest of SSA countries and the Middle-East as well as the Americas and The Company is expected to target high net worth individuals and institutions in demand for a sophisticated high-level of investments banking service.
- For KCL’s purpose, Infrastructure projects are defined in two major categories:
- Hard Infrastructure that could include toll roads, transportation, power utilities, and others; and;
- Soft Infrastructure, which is also made up of two components:
i) Social Infrastructure like education, markets, recreation centers, shopping center, hospital and healthcare facilities;
ii) Economic Infrastructure like infrastructure for manufacturing, ICT facilities centers and others
- In KCL, Private Equity (PE) is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. Generally there is a wide array of types and styles of PE and the term private equity has different connotations in different countries. PE is an ownership interest in a legal structure that in turn holds equity ownership interest in companies that are not listed or traded on a public An investor or investors referred to as limited partners will invest in a private equity fund which will be managed by the General Partners of the fund, in this case KCL.
- KCL, as the fund managers will typically invest the funds in a portfolio of companies/investments and/or projects for the medium to long term (i.e. 5-12 years).
- The success of Private Equity Firms (PEFs) will depend on the ability of its portfolio of companies or projects to increase its value after a period of time and the fund’s ability to dispose of its The disposal is normally through sale to an acquirer, a public offering or listing on a stock market.
- PE investments are grouped into three main categories depending of the timing of the investment relative to the organizational lifecycle, namely i) Leveraged Buyouts; ii) Venture Capital; and iii) Growth
- PE investors such as high net worth individuals and institutions are normally invited by fund managers to make capital The commitment made by each investor is drawn down via Capital Calls on “a need” basis up to the maximum amount committed.
- It is expected that the privatization pipeline in the SSA region include such infrastructure assets like roads, airports, bridges, public transit systems, seaports, power stations, power lines, gas pipelines, and communications PE funds plays the role in filling in the gap of financing as the burden becomes increasingly large for the governments to tolerate on a stand-alone basis, in addition to the added value that private equity plays in this industry.
- It is argued that private equity ensures effective corporate governance, provides financial engineering, growth capital, a clear strategic vision, creates incentives for efficiency, amongst Asset backed sectors like infrastructure, real estate and utilities have been a focal point for private equity fund managers
Request A Service
The principal services of the company will be project development, sourcing funds and project implementation and management, and finally repaying all private equity investors and creditors on NEGOTIATED AND AGREED term.