An affiliate of the recently merged Deloitte McKinsey Investment Bank. Your company has been retained by a very wealthy Hedge Fund player from the Middle East who wants to establish an Equity fund in Sub-Saharan Africa. They have allocated $100m to this portfolio. The Hedge Fund player has a mandate from investors to maximise investment returns over a seven-year period, after which the money is to be returned to the investors. Another division within your consultancy has already performed due diligences on various targets and has recommended five investments: MTN, Discovery, Goldfields, Telkom, and Aspen. The Hedge fund has a strict policy of not investing in any two assets in the same industry in order to manage risk. Your division/syndicate has now been retained to optimise the investment decision and select three companies based on: Appropriate valuation (Apply all valuation techniques learned in class). Risk inherent in the portfolio. Macro and microeconomic trends. Other pertinent factors for consideration.

For each of the three potential investments, the evaluation of each investment will be based on each of the criteria below:

1.Application of valuation techniques (DCF, DDGM, Relative, etc.)

2.Risk inherent in the portfolio

3.Ease of completing transaction

4.Other pertinent areas for consideration