|Arif, a graduate of Harvard Business School and Brown University, has over 21 years of PE, corporate dev & operation management experience at blue chip firms in the west and frontier markets.
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|Pir Saad Ahsanuddin|
|Saad, a graduate of Harvard Business School and Brown University, has over 19 years of PE, investment banking, deal structuring and entrepreneurship experience at blue chip firms in the west and frontier markets.
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Our hypothesis runs contrary to that of many managers investing in frontier markets from developed capitals. In frontier markets, we believe business is still conducted the old fashioned way – through highly personalized and sustained relationships and networks. In addition, each frontier market presents unique considerations in terms of business culture, level of development, and regulations.
The founding Partners of Boston Equity Partners when based in the United States decided that fulfilling their objective of investing in frontier markets would require three commitments: physical proximity, auditable and transparent track record and developing a unique investment thesis for each target country.
Our investment thesis revolved around a stress tested hypothesis. Frontier markets are inherently volatile and unstable. Relationships and networks are the most effective risk mitigators. In order to succeed and generate long term alpha, our investment process requires deep knowledge and discipline.
Using proprietary analytical and comparable tools we identify key triggers that drive changes in consumption patterns, providing diversified customers with value addition, ease of use, or removal of pain. Once our investment thesis is developed, an investment is only made if we believe BEP can achieve market leadership position in its target vertical.
We believe unlike developed markets, frontier markets are plagued with weak corporate governance, convoluted regulatory frameworks and complex legal regimes. These pitfalls look very intimidating from afar. However the very same pitfalls provide competitive advantages and significant barriers to entry for entrepreneurs who learn to successfully navigate these complex structures. BEP prides itself in identifying key entrepreneurs who do so ethically.
In the initial stages of our history, the founding partners of BEP took the decision that when faced with a very compelling business proposition, and where an entrepreneur was not available, we would undertake the role of active seed entrepreneurs.
Finally, no BEP investment is made without a primary and secondary exit strategy in place to provide investors with a liquidity event within a specific time frame.