06 Oct 2016
Ivan Agabekov, CFO, INOKS
How did INOKS become one of the largest investors in raw materials?
INOKS Capital does not invest in raw materials through traditional markets as such, (futures or physical). INOKS is an independent asset manager which manages its own investment vehicles. First of all, our strategy involved the supply of short term working capital to SME’s in emerging countries. We are mostly interested in sub-Saharan Africa and the countries of the former Soviet Union, but we have also invested in South America and South-east Asia. We target non speculative companies which are active in the raw materials sector, notably those involved in agricultural commodities (grains, softs or vegetable oils) and certain animal proteins, as well as metals (non-precious) and energy. We have one prerequisite: the added value chains of these commodities must respect clearly defined criteria for durability and impact.
When we launched this strategy, we noticed that numerous companies which had been established for several generations were situated outside the banking market and lacked working capital. These companies possess expertise, what they lacked was the capital required for purchasing the inputs and to plant, harvest and transform. Unfortunately, the banking market is often deficient when it comes to SME’s, particularly in …