tbn members day 2011 - norman fraser - angello capital partners [case study]

1Copyright © Angello Capital Partners LLP, 2011. All rights reserved.

Norman Fraser

Copyright © Angello Capital Partners LLP, 2011. All rights reserved. 2

Emerging Europe

• Funding gap• Microfinance– Small loans– E.g. <$20,000

• Bank loans– Poverty trap, e.g. 150% collateral required– Expensive, e.g. double digit interest– Non-viable for some business models


Year 1 Year 2 Year 3 Year 4 Year 5

Loan $200,000

Interest 9%

Year 3

Income $10,000 $25,000 $45,000 $80,000 $110,000

Capex $140,000

Opex $40,000 $40,000 $40,000 $40,000 $40,000

Repayment $81,917 $75,917 $69,917

Cash ($51,917) ($142,833) ($207,750) ($167,750) ($97,750)

Loan Scenario


Year 1 Year 2 Year 3 Year 4 Year 5

Investment $200,000

Income $10,000 $25,000 $45,000 $80,000 $110,000

Capex $140,000

Opex $40,000 $40,000 $40,000 $40,000 $40,000

Cash $30,000 $15,000 $20,000 $60,000 $130,000

Equity Scenario


Angello Capital Partners

• Transformational investment business• Equity investments• Targeting SME businesses


Transformational Investment

• Financial ROI– Strong value growth– Five year timeframe

• Community ROI– Job creation– Training & development– Micro economy impact– Ethical practices


About AngelloPilot Project: Moldova


Republic of Moldova

• Population ~4 million• Ex-Soviet• Ethnically Romanian, Russian, Ukrainian• GDP per capita– Lowest in Europe– 174th in the world

• Traditionally agricultural– Now dysfunctional


Pilot Project

• Deploying £1,250,000• 4-6 SME investments• £100,000 - £300,000• Pipeline– Green agriproducts – Food processing– Logistics– Business services


Moldovan Prospects

• “Moldova’s growth trends in 2011 are among the most impressive in Europe” (UNDP)

• GDP growth– 2010 = 6.9%– Early 2011 = 8.4%

• Legislation


What’s next?


To become so successful that our bestpeople will leave to start great

companies to compete against us


1,200 ICT companies29 medium-to-large software companies

40,000 people (1%)10% of GDP