Investment Strategy
In addition to investing opportunistically in the FMCG, business support services, real estate and other sectors, LC seeks to invest in or create market leaders in the rapidly growing sectors of Georgian household consumption, which accounts for 59% of GDP.
In particular the company focuses on the following sectors:
- food retail
- consumer electronics & white goods
- car retail
- fuel
- tourism & travel
- restaurants & casual dining
- furniture & home improvements
- healthcare
- fitness
The above sectors account for 71% of household consumption or 39% of GDP. In each sector LC has set investment targets comprising of the target market share and the size of investments.
The Company invests in the established businesses as well as startups, recognizing that some of the most exciting growth opportunities in Georgia arise from the fact that many attractive consumer goods and services segments are currently underdeveloped.
LC seeks, where appropriate, to co-invest with the reputable financial investors or purchase significant minority stakes in the established businesses. When backing a talented management team of a startup, the Company typically seeks to acquire a significant minority or majority equity interest, and over time attract financial or strategic investors. In all cases, LC seeks to add value by helping portfolio companies refine strategy, streamline management processes, improve financial reporting and transparency, obtain debt funding, distribute leverage and create synergies with other LC group companies and groom the companies for the eventual flotation or trade sale.
Business realities
Georgian retail, food processing, business services and other sectors are excessively fragmented, while growing businesses have difficulty accessing capital and institutionalising the management. At the same time capital shortages, costs of logistics and IT, rising commercial real estate prices and lack of outsourced services seriously hampers rapid growth.
The Company invests in the established businesses as well as startups, recognizing that some of the most exciting growth opportunities in Georgia arise from the fact that many attractive consumer goods and services segments are currently underdeveloped.
LC seeks, where appropriate, to co-invest with the reputable financial investors or purchase significant minority stakes in the established businesses. When backing a talented management team of a startup, the Company typically seeks to acquire a significant minority or majority equity interest, and over time attract financial or strategic investors. In all cases, LC seeks to add value by helping portfolio companies refine strategy, streamline management processes, improve financial reporting and transparency, obtain debt funding, distribute leverage and create synergies with other LC group companies and groom the companies for the eventual flotation or trade sale.
Business realities
There are virtually no listed companies operating in
the Georgian consumer sector with the most attractive companies being too small
to be accessible to the institutional and HNW investors
Georgian retail, food processing, business services and other sectors are excessively fragmented, while growing businesses have difficulty accessing capital and institutionalising the management. At the same time capital shortages, costs of logistics and IT, rising commercial real estate prices and lack of outsourced services seriously hampers rapid growth.
