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Investment Philosophy

Investment Philosophy

Capital and know-how support... Proactive management in every phase of the investment process...

In order to provide its shareholders a sustainable and steady capital return, EGC Agri Capital generates a valuable real asset investment portfolio consisting of companies in growing industries, which intend to create added value by developing their financial performance through capital and know-how support.

Investment Assessment, Research and Development Process

The investment philosophy of EGC Agri Capital is based on focusing on companies with a potential for growth through a professional management on every ring of the agricultural value chain. 

In this context, target companies are held subject to a detailed analysis process by our asset manager Egeli & Co. Asset Management (“EPYAS” or “EGC Asset Management”) and they are also legally, financially, taxationally and operationally inspected in detail in line with the investment procedure. 

No conflict of interest occurred within the relevant year, between the Company and the corporations/institutions offering investment consulting or rating services to the Company. Information on the potential matters, which may possibly result in conflict of interest, and importance thereof are stated in the agreements entered into by and between these corporations/institutions and the Company.

In the aftermath of the assessment process projects that meets with the investment philosophy and return criteria of EGC Agri Capital and also which considered worthy for investment are finalized further to the approval of Board of Directors based on the recommendation of the Egeli & Co. Asset Management Investment Committee.

For the purpose of fulfilling the criteria of corporate governance, environmental and social performance criteria, he puts the sustainability and responsible investments in the center of all the valuation and he did not give his consent to any financial proceeds that are not creating social benefit.

While investing in the agriculture sector, he constituted his own investment philosophy as to contribute in the development in the regions where investments are made, to minimize environmental effects of his investments and to produce the highest value for all of its stakeholders.

EGC Agri Capital forms the infrastructure for a sustainable financial performance by also improving the governance profile of the companies it is investing in. This approach is one of the main pillars of our investment strategy aiming sustainable return in the long run.

Reports containing financial and operational key performance indicators, issued by the invested companies are regularly submitted to Board of Directors by Internal Audit and Real Asset Investments Team and the ongoing operations of the companies in the portfolio are monitored regularly.

While investing in the agriculture sector, he constituted his own investment philosophy as to contribute in the development in the regions where investments are made, to minimize environmental effects of his investments and to produce the highest value for all of its stakeholders.

 

Revealing the investment process

● Reviewing investment opportunities in line with prespecified investment criteria

Assessment and approval phase

● Preassessment of investment opportunity, industry research, competition analysis, comparative analysis, quality of target company executive staff, reference speeches, financial analysis and evaluation works
● Issuing investment report and submitting to Board of Directors

Financing and closing transaction

● Discussing the Letter of Intent with the target company and coming to an agreement in principle
● Detailed inspection process together with other consultants
● Making preliminary negotiations with the banks for financing
● Signing the Share Purchase Agreement and Partnership Agreement
● Closing (completing the transaction)

Processes after closing

● Development of corporate stategy by Board of Directors and Executive Board
● Developing Corporate Governance Criteria
● Establishing Audit processes
● Forming Audit Committee
● Investor relations
● Issuing detailed management reports

Exit from investment

● Public offering
● Sale to strategic investor
● Sale to financial investor
● Resale to founding partners