CEO of Alta Semper, Afsane Jetha discussed the firm’s strategic investment in Egypt’s Macro Group Pharmaceuticals at the AVCA Annual Conference.
(PRUnderground) August 30th, 2023
Afsane Jetha, CEO of private equity firm Alta Semper recently shared her insights into the firm’s successful investment in Egypt’s Macro Group Pharmaceuticals at the 19th Annual AVCA Conference and VC Summit, hosted in Cairo earlier in May. The conference brought together key stakeholders to discuss critical aspects of investing in Africa and offered an insightful exploration into both the triumphs and trials of the African investment landscape, fostering practical dialogue on how fund managers have successfully navigated challenges.
Alta Semper invested in Macro in 2017, a leading player in medicalized cosmetic products, and successfully prepared it for a stock market listing in 2022. At the conference, Jetha noted the import substitution strategy adopted and the efforts to equip the company for a stock market listing.
Jetha noted that Macro’s growth hinged on an import substitution strategy which enabled the business to drive margin growth in a time of high inflation and currency volatility. This also supported the ability of the business to introduce new products rapidly. The majority of the company’s competing products were imported, often carrying price tags three to four times higher than those of Macro’s offerings. Through adopting this strategy, Macro has tripled its market share during Alta Semper’s investment period.
Jetha also noted the significant progress made in institutionalizing Macro more broadly. “Macro initially lacked the structures and processes required of a public company. Alta Semper saw an opportunity and collaborated with the founders to institutionalize the business by developing governance structures, enhancing reporting, and increasing management bench strength.” The institutionalization of Macro was a critical step in positioning the business for its public debut with a range of institutional and retail investors.
Macro’s shares commenced trading on the Egyptian Exchange in February 2022, with a valuation of EGP 2.8 billion (equivalent to US$178 million). Post Alta Semper’s investment, Macro’s gross profit margin notably rose from 63% in 2018 to 80% in 2021, and its EBITDA margin grew from 21% in 2018 to 41% in 2021.
Reflecting on the journey, partner at Alta Semper, Zachary Fond said “Macro’s transformation and success story underscores Alta Semper’s commitment to driving change and progress in Africa by supporting the strategic, financial, and operational development of its healthcare portfolio, and we’re excited about the opportunities that lie ahead.”
Alta Semper invests in consumer and healthcare platforms, targeting African growth markets, and approaches asset management with innovative strategies while leveraging collective specialty experience. Among Alta Semper’s transactions are growth equity investments in ODM, the leading oncology, radiology, and diagnostics platform in Morocco.
To learn more about Afsane Jetha, please visit her LinkedIn profile.
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Original Press Release.