Growthgate follows a ‘Buy and Build’ strategy by investing growth-equity capital in selected mid-sized companies, defined as businesses with annual revenues of between $50m to $200m, that exhibit strong prospects for growth and scalable business models. Furthermore, such companies must invariably possess an experienced management team, a profitable track record, qualitative products or services, and a sizable market share in their home market.
Growthgate seldom uses leverage in its investments and seeks to own and hold strategic minority stakes in portfolio companies, leaving the founders-managers in charge of day-to-day operations and for charting the general course of the business. As a partner to mostly family-owned or entrepreneurs led-businesses, Growthgate takes an active involvement in corporate governance by retaining key voting rights on certain reserved matters that are deemed vital for the business including M&A, levels of indebtedness, sale of assets and exit timing & routes.
Growthgate’s team closely assists the founders-managers to aggressively expand their models, either organically or more often inorganically, by identifying and acquiring complementary targets to boost revenues, grow EBITDA and enhance the consolidated profits.
Over the past years, local success stories in partnership with Growthgate, have become true regional champions with several having reached leading market positions in the MENA region and beyond including in Africa.