Frontier Market Investor Mandate: Interview with Jonathan
Global Small Business Private Investor Mandate Interview
Family offices, fund managers and capital raisers who want to understand how an institutional manager with a global mandate thinks about frontier and emerging markets.
Five points worth keeping
- A broad, non-sector mandate. Jonathan says the mandate is not focused on any industry or sector. The firm looks for opportunity across frontier and emerging markets.
- Information gaps create the opportunity. He says investors often lack information on how these countries work, including their politics and economies. They also lack information on the companies that operate there.
- Fear can be overdone. Names like Bangladesh, Pakistan and Vietnam can create fear among investors. Jonathan says the realities are rather different and that high quality companies with good management teams are available.
- Quality companies at distressed prices. The firm looks for what Jonathan calls AAA quality companies that are valued at triple C levels. He says the low valuation reflects the country rather than the company.
- Growth themes behind the deals. Jonathan points to large, young, urbanizing populations with more cash in their pockets. He says this supports consumer companies, banks and cement companies.
What you will hear
Jonathan runs an investment management company in Fort Lauderdale with an all institutional client base. The firm runs private vehicles that invest mainly in frontier and emerging markets. His mandate is broad and not tied to one sector. The aim is to find good companies in countries that investors often misunderstand or fear, such as Bangladesh, Pakistan and Vietnam.
Jonathan also explains how he got here. He moved from England to the United States in 1988. In 1990 he started a Latin American sales, trading and research business for the Hong Kong Shanghai Banking Group in New York. It later grew to cover Eastern Europe, Russia, Africa and Southeast Asia. Richard C. Wilson asks which sectors close most easily, and Jonathan points to consumer companies, banks and cement.
From the source
- Jonathan moved from England to the United States in 1988.
- In 1990 he started a Latin American sales, trading and research business for the Hong Kong Shanghai Banking Group in New York.
- Jonathan has been involved in frontier and emerging markets for 30 years, including about 20 years as an investment manager.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Global Small Business Private Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
In their words
"AAA quality companies that are valued at triple C levels because they are in countries that people don't understand or are fearful of."
"The realities are actually rather different, and you can get the opportunity to invest in very high quality companies with very good management teams."
"They do live in volatile environments, but they tend to be better managed as a result."
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What type of investor is Jonathan?
Jonathan runs an investment management company whose clients are all institutional. It runs private vehicles that invest mainly in frontier and emerging markets.
Does the mandate focus on certain industries?
No. Jonathan says the mandate is very broad and not industry or sector focused. He does name consumer companies, banks and cement companies as areas where the growth theme plays out.
What does Jonathan look for in a company?
He looks for high quality companies with good management teams that are valued cheaply because of the country they operate in. He calls these AAA quality companies valued at triple C levels.
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