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 African Business Network 55
“It’s a good portfolio composition but it also ful ls the wishes of many of our investors who want us to make developmental investments,” explains Baird.
“Half the portfolio companies are higher
risk but potentially  ve times the return investments, the other half are lower risk, low jurisdictional risk and two and a half times the investment and that balance feels good.”
With the geographical and industrial spread of the portfolio Baird hopes that with some more investments, good management and a bit of luck the funds will return more than the base case promise of 2.5 times the money.
With the current political and economic uncertainty  ooding the US, Europe and the UK there is no better time to be hedging those bets on African growth.
“Those underlying growth variables are
all still in play; urbanisation, leapfrogging technologies, a lot of industry formation and industry risk has come down a lot in absolute terms but even more in relative terms.
“It feels like the rest of the world has got a lot more risky and uncertain and if anything, Africa has got a little better,” Baird observes.
“We joke that you can go to the US or the UK and get developed market returns but emerging market uncertainty whereas in Africa you get emerging market uncertainty but at least you get emerging market returns.”

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