Profile

About Us

Hawkhill was established in 1995 as a Norwegian energy and technology investment advisory firm. Today, Hawkhill advises business development and investment strategies in East Africa with a focus on financial services, technology, renewable energy, agriculture, health and education as important drivers of development in the region.

Difference

Our approach to consulting is different because we have adapted our products, services and pricing models to market conditions. This enables us to offer affordable and cost-effective solutions for our clients while maintaining international quality standards. Our differentiation is rooted in Tier I talent, technology and years of experience working for-profit as a social enterprise in Africa.

Development

Hawkhill’s move to Africa in 2011 was inspired by the combination of significant advances in development indicators, financial technology and private equity financing for SMEs in East Africa. The increased role of private sector investment in Africa is a welcome trend that could transform high-growth frontier markets into thriving consumer economies.

 

Africa

Following the U.S. housing crisis and Euro crisis in 2008-9, emerging markets became increasingly popular destinations for investment. As popular emerging markets in Asia become increasingly saturated in capital and returns to investors diminish, many companies and investors are evaluating Africa as the next major growth market.

Africa’s economic and demographic statistics are impressive.
 o     According to the International Monetary Fund, 11 of the world’s 20 fastest growing economies will be in Sub-Saharan Africa in 2020 (IMF, October 2015).
 o     The UN projects that Africa’s population will double by 2050, accounting for more than half of the world’s population growth.
 o     Nearly half of Africa’s population is younger than age 15, and youth are embracing the internet.
 o     PriceWaterhouse Coopers predicts that investment in Africa will grow at 12% CAGR until 2020 (PwC, 2015).
 o     McKinsey estimates that private equity investment in East African SMEs will grow at 14% CAGR from 2014-2018, faster than any other asset class in Africa (McKinsey & Co., 2014).

East Africa

Africa is a natural destination for international investment, and East Africa has unique advantages over the other regions.
o Strategically located between Europe, Asia, the Middle East and Africa.
o Diversified economy with very recent major discoveries of oil and mineral deposits.
o Kenya is one of Africa’s most developed financial and capital markets with cross-listings in Uganda and London.
o As East Africa’s economic and political hub, Kenya provides a launch pad into the East and Central Africa region with over 450 million people.

Private Equity

Private equity (PE) became known as an industry in the United States during the 1980s when PE funds returned an average of 19% IRR (annualized return) to their investors. The industry has been popularized by the venture capital funds of Silicon Valley and multi-billion dollar mega buyout funds like Carlyle, KKR and Blackstone.

Since the financial crisis in 2008, PE has become increasingly popular with pension funds and global asset managers because of its relative stability and growth compared to publicly traded stocks. Top quartile PE funds outperformed U.S. and European stock markets respectively by 19% and 24% in average annual return between 1993 to 2013, according to the Bain & Co. Global PE Report 2014.