The fund will leverage Tell’s capabilities and investments to create long-term sustainable value for all stakeholders.The strategy is a macro-play on the Maghreb as a region with a highly favorable socio-demographic profile characterized by: a young and well-educated population; a large relatively rich and growing middle-class; increasing consumer spending; and, a massive urbanization drive that is expected to continue. This is complemented by a growing private sector, and a stable environment attractive for investments.
Our unique local setup allows for better access to proprietary deal flow. We do this by targeting medium-sized companies with a local competitive advantage that are well positioned for regional expansion. This also enhances exit strategies. The sectors of focus include Consumer Goods and Services, Distribution and Logistics, Healthcare, and Agribusiness.
The investment philosophy is in line with the fund’s development impact goals, which include contributing to regional integration, maximizing value for business and society stakeholders, contributing to job creation, improving ESG standards, and to act as a catalyst for domestic private capital.
The current slowdown in the demand for seaborne dry commodities has resulted in freight rates experiencing historic lows. Shipping cycles generally do not last longer than ten years and the current ongoing cycle is in its eighth year. This presents a window of opportunity for an attractive and lucrative point of entry into this sector to benefit from a market turnaround, which will gradually occur as the supply glut is corrected through increased scrapping, reduction of new orders, and as the world economies begin to recover.
We aim to take advantage of these all-time lows experienced by the current market through the Shipping Opportunity Fund, which places a strong focus on the dry bulk shipping sub-sector.
The fund places special emphasis on the dry bulk sector, which has entered a transitional phase. In recent years, there has been a significant reduction in charter rates and asset values of bulkers are currently the most depressed as they are currently trading at a nearly 60% discount to their last ten year average. Bulkers have been the hardest hit by this industry downturn, but given the essential nature of the cargoes that they transport, they will also recover the most rapidly when markets turn.