Our Strategy

Diversified Resilient Economy

• Diversified non-commodity reliant economy with consistently high GDP growth across the last decade

Top-ranked in economy environment indices

• Seventh in Ease of Doing Business (2020).
• Top eight in Europe region by Economic Freedom Index (Heritage Foundation, 2019) and #16 internationally.
• Low corruption and bribery risk (Transparency International, 2019 and Trace International, 2019).

Investment-led GDP growth close to 5.2% growth in 2019

• Fast-growing tourism revenues supporting SME development and accelerating GDP growth.
• Development of large public infrastructure programmes backed by multilateral international funding driving potential GDP growth.

Historically low inflation with 3% target set from 2018 by National Bank of Georgia

Access to capital

• Only Group of its size and scale focused on investing in and developing businesses in Georgia.
• Uniquely positioned given the access to capital in a small frontier economy.
• Targeting to raise third-party managed capital over the next five years.

Access to management

• Reputation among talented managers as the – “best group to work for”.
• Attracted talents have demonstrated solid track record of successful delivery.
• Proven DNA in turning around companies and growing them efficiently.
• Platform for entrepreneurs to build institutions (entrepreneurship culture).
  • If we do not have the right people then we do not invest: no matter the attractiveness of the opportunity.

Strong corporate governance

• Strong Board comprised with mainly of independent directors with extensive international experience.
• Outstanding track record in institutionalising businesses, creating independently run/managed institutions.
• Approximately 35 employees at the holding company level.
• Highly experienced management team in each portfolio company with a strong measure of independence.
• Aligned shareholders’ and management’s interests by share compensation.
• High level of transparent reporting.

Capital allocation

• Highly disciplined approach to unlock value through buying and developing businesses.
• Clear, company-specific, exit paths through trade sale, IPO, fund structure or promoting interest in five to ten years.
• Disciplined when investing by buying at reasonable prices.
• 360-degree analysis to be performed when evaluating capital returns, new investment opportunities or divestments.
• Exit options are set prior to making an investment decision.

Managing portfolio companies

• Attracting and developing talent is a top priority.
• Aligned management style with institutionalised/ noninstitutionalised portfolio companies.
• Share ownership plans (proxy shares) for portfolio companies’ management.