Ato Bentsi-Enchill: "More often than not, massive sustained wealth is built through owning equity and making the right investments"
Q&A with the investor on the importance of generational wealth, on serving as the bridge between entrepreneurs with investors, and on why cash today is better than cash tomorrow.
Ato Bentsi-Enchill is a Partner at Black Adam Africa, a boutique investment firm specializing in private equity, investment advisory and project financing committed to building and financing high-growth and high-potential businesses in Africa.
What fundamental belief system inspired the creation of Black Adam Africa Capital Management?
My fundamental belief system has always revolved around the idea of legacy and it’s significance to me. I’m a product of two families whose forefathers had the opportunity to build generational wealth, but for one reason or another, their plans fell (very) short of capitalising my trust fund. Sadly. When I went to boarding school in the United States, I interacted with folks whose families have had money in their families from the 1800s and I was blown away by the sheer depth of generational wealth that was built and has been sustained since then. These families’ money continues to make more money. This was when I started to understand the difference between simply being rich and being wealthy. I believe that more often than not, massive sustained wealth is built through owning equity and making the right investments, which of course, should be catalysed by the power of compounding. In my quest to get this generational wealth building started, I opt to rely on my ingenuity to make magic happen, hence, BAACAP.
In what we currently do at BAACAP, we saw an opportunity to provide value and went for it. To give context to anyone reading, BAACAP is a boutique private equity and transactional advisory firm, helping Africa-focused companies raise capital. Earlier on in my life, I interacted with many venture capital and private equity professionals who wanted to execute deals in Africa. On the flip side, I was also based in Ghana and interacted with numerous entrepreneurs, who I realised did not know how to speak the language of investors. I’ve built startups before and I realized that communication was a huge barrier to me engaging with my investors in the West and I made it my job to help these founders bring their best selves to the table when raising capital for their companies. Of course I also believe in the transformative power of private capital to impact businesses and act as a catalyst for growth in communities, especially here in Africa, but it was not my driving professional credo at the time.
What’s something you do every day that is non-negotiable for you?
I walk for at least an hour almost every day. Last August, I bought an Apple Watch and I’ve been addicted to closing at least two of my Activity rings every day. It’s a very simple exercise and it allows me to take in the day, pray, think, listen to some of my favorite podcasts, and sometimes, have long conversations with my business partners with minimal interruptions. It’s become a very important part of my day and sometimes after a long stressful day, it’s one of the things I need to cool off and re-focus. It’s no surprise that Steve Jobs also believed that his most creative ideas came while he was walking.
What are the formative ingredients in your childhood that came to create your perspective?
I was very close with my maternal grandfather growing up. He had an illustrious career as a public servant in the Presidency under Ghana’s first President, Dr. Kwame Nkrumah, 18 years as an executive in the alcohol-beverage sector, including as a shareholder in Paramount Distilleries in Ghana, board member of United Africa Distilleries and founder of the Ghana Liquor Manufacturer’s Association. The one company he founded that was still around in my infant years was Black Adam Limited, the promoter and distributor of alcohol beverages from his independent distillery, Ideal Distilleries. Ideal produced local gins and schnapps targeted at the average African consumer who, he believed, was not sophisticated enough to appreciate, purchase and consume drinks such as whiskey, cognac and brandy. In paying homage to him, I named my company Black Adam Africa Capital Management. A couple of years ago, my mother told me a story of how she would come into her room when I got back from school and hear me speaking excitedly to someone on her phone. Mind you, I was about 6 years old at the time. Naturally, she thought I was speaking to a girl. Imagine her surprise when she snatched the phone from me and heard my grandfather’s voice at the other end of the line! He told her that I called him as soon I got home to tell him about my day. He was the quintessential business man in his well-cut suits and affable mannerisms and I admired every part of him. I believe having a man of this stature in my early life really impressed the business mindset upon me, and he has continued to be a massive influence on me since then. He’s not alive anymore but his stories and nuggets of advice stay on with me.
What do you consider to be one of the greatest challenges for building a company on the African continent?
I think you need to qualify this question. Anyone can start a company and keep it going; that’s the easy part. But being able to wake up day after day and keep going, even when things don’t look too promising, or you don’t know where your next paycheck is coming from takes a different kind of person. In my opinion, in order to build any company whatsoever, the key ingredient is the internal motivation. It’s important because absolutely no one can do that work for you. Something deep within you has to keep you going. Some call that grit, which I see you bring up in your next question. But really, I think that’s it. Some folks answer this question with “capital” or “talent”. I think it’s simply the will to get the work done. Not everyone will have that from the start, some will have a large fire burning and then it dies over time (as it has done for me and some of the previous companies I’ve built) but for BAACAP, I keep it pushing and God willing, this fire burns forever.
Building a company from scratch takes grit. What drives you to keep building?
I read a piece from an article on Div Durakhia and his brother, Bhavin many years ago and it has stuck with me ever since. The author asks Bhavin why his brother works so hard and what he sees as the purpose of all the money they both make. And his response was “Each of us has a human responsibility to make an impact that is proportionate to our potential”. In essence, because they can be successful in business, they have no choice but to do it. I’m of the same mind and I believe that statement wholeheartedly. Now, I’m not saying I’m the smartest or best in anything; I know there are way more gifted people than me in this world. But looking back at my life’s trajectory, I can’t help but feel blessed, and also feel that responsibility to not ‘waste’ any of these blessings and opportunities that have come my way. I believe this is why I do so much and achieve so much. For my full story, we’ll need a longer session. But to answer your question, I believe this quote and what I’d mentioned above regarding legacy drives me to keep building.
What are you most proud of achieving with the Black Adam Africa Capital Management so far?
You, most likely more than anyone else, know that it’s hard for me to pinpoint one achievement that makes me proud because we quickly forget our wins and are constantly on the move searching for the next big task to conquer. All the same, I’m proud of the reputation I have built in the industry to have the business partners I have now. All of these individuals are older, wiser people I looked up to just a couple of years ago, and now I sit with them in meetings and we speak as partners to construct deals. Another important addition to this is something one of my big brothers shared with me. It’s the significance of “time and timing”. This concept basically states that once you’ve put in enough diligent hard work and have gone through varied experiences relating to your craft, you become deserving of opportunities that present themselves to you and you’re able to maximise them. You’ve not only put in enough time to be in the window such that you’re able to exploit opportunities but you become deserving of the opportunities in a way that people are thankful for the chance to work with you. Once you successfully convert the first opportunity, the subsequent ones are much easier to attract.
What advice do you have for prospective founders looking to build a company in Africa?
In the words of JAY Z when an 11 year old interviewer asked what advice he’d give to kids who wanted to be as successful as him, “You’ve got to have that ultimate confidence like you do. You’re very confident… And just believe in yourself.” *Laughs hysterically*. But for real, I’d say for African founders looking to raise venture money, you should understand the game you’re playing. I interact with a lot of founders who seem oblivious to what may be happening in the industry at the time and don’t game scenarios into their fundraising activities. No one is saying you’re wrong if you believe your company is worth $100m, but if you’re raising at $100m, you better know and be ready for the expectations that will be placed on you. I think some founders get in the game not seeing the full picture and that’s what gets them frustrated a couple of years into building a venture scale company. That would be my advice. Another thing: take the money. I know we all believe our companies can be the next Uber and IPO for $XXB. But guys, we’re in Africa. Cash today is better than cash tomorrow. Don’t let the Silicon Valley hype get into your head too much. If you get a good acquisition offer that is ready cash and is a fair deal for you, your employees and your investors, take it. Because that opportunity to cash out may not come again for a very long time. I’ve seen two founders reject an eight figure acquisition offer because they thought they could build a billion dollar company. They were in their early 20s I believe and that money would’ve been life changing and there were so many other problems they could apply that money towards. They rejected the deal and I really hope they reach that billion dollar valuation they seek. Time will tell.
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Jeph Acheampong works at Blossom Academy; which exists to close the Africa tech skills gap through data science bootcamps, leadership workshops, and dedicated careers support.
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