Tashkent, Uzbekistan (UzDaily.com) — The Azerbaijan-Uzbekistan Investment Company (AUIC) was established in 2023 as a joint initiative by the governments of Azerbaijan and Uzbekistan.

With an authorized capital of US$500 million, AUIC is already charting a new course for economic partnership between the two nations. Its core mission is to directly support businesses of various sizes and sectors, driving the development and prosperity of both countries’ economies through the implementation of joint investment projects.

AUIC’s investment focus is on projects and businesses with sustainable, long-term growth potential, primarily originating from Azerbaijan and Uzbekistan. However, the company remains open to initiatives from other countries if they align with the strategic interests of both republics.

AUIC targets stable sectors characterized by low volatility and consistent demand, as well as emerging industries with high growth potential. Priority areas include financial services, transport, energy, healthcare, logistics, manufacturing, pharmaceuticals, biotechnology, fintech, IT, and education.

Portfolio diversification across sectors and companies is a cornerstone of AUIC’s investment strategy. A key criterion in partner selection is the presence of an experienced management team with a successful track record of at least four years, as well as sound financial standing. Companies must demonstrate a positive credit history, a debt-to-EBITDA ratio below 3, and a debt service coverage ratio above 2. A distinctive feature of AUIC’s approach is direct financing without involving third parties, ensuring efficiency and control at every stage of the investment process.

AUIC operates on a minority investment model, typically acquiring up to 49% equity stakes. This approach allows the company to invest in private businesses without seeking control, enabling founders to retain operational leadership and decision-making authority. At the same time, these businesses gain access to the financial and strategic support necessary for scaling and growth.

This structure is a deliberate strategy: partners retain 51% ownership and the leading role in strategic decision-making, while AUIC acts as a resourceful investor and enabler, offering capital, expertise, and access to regional opportunities. This model ensures managerial independence, flexible decision-making, and a balanced distribution of responsibilities between the parties.

AUIC’s strategic goals include import substitution, development of innovative and manufacturing sectors, expansion of bilateral trade, and attraction of foreign investment. Investment ticket sizes range from US$1 million to US$25 million, with ownership stakes capped at 49%. The minimum expected internal rate of return (IRR) is 12%, with a capital multiple target of 1.5x to 2.5x, and an investment horizon of 5 to 8 years.

AUIC actively participates in strategic governance: it joins company boards, approves key executives, sets financial and operational covenants, and promotes corporate governance best practices — including regular reporting and monitoring of financial and operational metrics. The preferred exit strategy is sale of the stake to a strategic investor. Alternative options include put options, IPOs, or secondary share buybacks. All decisions are guided by analysis of exit timing, expected returns, and current market conditions.

To apply for funding, a comprehensive documentation package is required. This includes a business plan with a detailed description of the product, market, team, and growth strategy; a market study and feasibility report (TEO) demonstrating the project's validity and potential; and the applicant’s financial statements to reflect their economic condition and stability. A structured profile of the applicant — outlining experience, role in the project, and motivation — is also required.

AUIC has already compiled a preliminary shortlist of projects totaling over US$80 million and continues to actively evaluate new proposals. Each project is assessed individually based on a complete and well-documented application.