June 5, 2015, 8:28am
Stimulus Private Equity’s Managing Director, First Lady Monica Geingos, this week said it is very challenging for the firm to find good investments.
During the presentation of Stimulus’ 2014/2015 financial results, Geingos said: “It’s easy to make investments but it’s not easy to make quality investments. There are quality assets out there but these assets are not yet available to us.”
According to Rein van Veen from Pointbreak, the company responsible for the management of Stimulus, the investment company has about N$140 million in investable cash readily available and is in a fortunate position to be able to call on roughly N$300 million in commitments for future investments.
Stimulus’ current portfolio includes investments in
Cymot (25 percent), Plastic Packaging (42.58 percent), Namibia Media Holdings (50 percent), Nashua (26 percent), Joe’s Beerhouse Properties (88.3 percent) and Walvis Bay Stevedoring (45 percent).
The latest audited financial results show that Stimulus’ assets increased from about N$480 million in 2014 to over N$520 million in 2015, while the company’s equity increased from roughly N$21 million in 2014 to N$32.2 million in 2015.
“These results indicate stable and continued growth of the portfolio,” noted Van Veen.
When New Era asked him what specific sectors the company is considering investing in, he remarked: “Stimulus is not limited by sector. We will consider investing in any sector that has the potential for reasonable long-term prospects.”
When pressed for his opinion on the possible entrance of another commercial printing press in the country, Van Veen admitted a third printer could be problematic for both the existing printers and any new entrant.
“It would be difficult for a third printer to operate profitably in our market. However, if this new entrant is government backed then it could be problematic for the existing printers,” noted Van Veen, adding that he disagrees with the fact that a state-owned printer should compete with the private sector.
Stimulus Private Equity was approved as an unlisted investment manager in 2014 while its parent company, Stimulus Investment Limited, was approved as a special purpose vehicle in 2015.