Helios Case Study
Environmental and Social Due Diligence
Helios Investment Partners (Helios) is the largest Africa-focused private investment firm, investing in invest in start-ups, growth equity investments, listed companies and large scale leveraged acquisitions across the continent. Their sectors of focus include telecommunications, media, financial services, power, utilities, travel, leisure, distribution, fast-moving consumer goods, logistics and Agro–allied sectors. Helios is also the largest emerging markets-focused Private Equity firm globally to receive B Corp certification.
Helios invested $100 million for a 12.4% stake in Africa Oil Corp. (AOC), a Canadian oil and gas company with assets in Kenya and Ethiopia. As part of the investment decision-making process, Helios required an independent environmental and social (E&S) due diligence of AOC’s activities.
Rosalind Kainyah and her team at Kina Advisory were engaged to carry out an independent E&S review based on AOC’s compliance with the international Finance Corporation’s (IFC) Environmental and Social Performance Standards, in time for a decision by Helios’ Investment Committee. The purpose of the E&S review was to determine whether AOC had effective procedures, systems and processes in place for identifying, assessing and managing E&S risks and impacts.
The E&S due diligence included a detailed review of documents relating to AOC’s policies, procedures, management plans and activities. It also accounted for the E&S impacts of the company’s operations in Kenya and Ethiopia based on Kina’s detailed knowledge and experience of AOC’s assets in these areas. Rosalind and her Kina team had a number of discussions with AOC and reviewed a report of an E&S assessment carried out separately by IFC.
The findings, conclusions and recommendations were presented to Helios in an executive summary and a comprehensive supporting report.
The outcome of the E&S review was an important factor in providing Helios with the necessary assurances to make a significant investment decision regarding AOC.