Ours is a sustainable and transformative approach to long term value creation that leaves in its trail an imprint of legacy businesses of the future.

The heart of what we do relies on identifying quality medium sized businesses with high growth potential, which are strategically positioned to address and benefit from the growth opportunities presented by our Country’s nuanced economic and developmental needs.

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We seek out management teams that are best of breed in their industries with a demonstrated track record. The adaptability of our philosophy enables us to weave in our broad network of sector experts to support our management teams in the development and execution of innovative actionable value unlock strategies. The common thread ensuring a stable pattern of long value creation is meaningful alignment of Vuna Partners interests with that of our various partners i.e. management teams, strategic sector expert partners and co-investors.

The effectiveness of our investment philosophy and operating model is premised on maintaining a portfolio of 6 to 8 carefully selected investments across diversified industries. In this way the Vuna Partners team is positioned to drive sustainable and transformative long-term value through depth of engagement and understanding of its businesses rather than breadth.

Our adaptive and well considered investment approach gives due consideration to the individual needs of our businesses including its size and maturity, and the skills and experience of management. Our approach addresses the needs of medium sized businesses to reach the next growth wave, by bridging gaps related to growth capital and expansion strategy development and execution support through the bolstering of internal operational competencies and business development initiatives.

Active value add approach

Collaborative development of the growth strategy

• Engaged shareholder, promoting seamless collaboration between the board, management and other strategic partners and co-investors
• Enabler to the successful formulation and implementation of value unlock strategies founded on sustainable and transformative principles
• Management teams’ access to our high response team to sound out key strategic issues

M&A support

• Access to broad industry networks and dealflow to support the identification and evaluation of attractive acquisition targets for purposes of market consolidation and margin enhancement through economies of scale
• Optimal structuring of acquisitions and execution and ultimate integration into the business

Financial support

• Optimisation of capital structure
• Equity and debt raising for the funding of acquisitions

Business Development support

• Experienced investment committee and network of seasoned industrial advisors supporting our businesses in developing new markets and networks for organic expansion strategies
• Our portfolio diversification strategy positions us to facilitate cross-selling between our various businesses

Governance

• Support and enhance good and effective corporate governance structures to enable the achievement of our sustainable investment objectives

Management incentives

• Implementation and enhancement of long-term management incentives linked to key performance drivers critical to effective long-term value creation

ESG initiatives

• ESG is considered a key driver in maximising value for investors (from both a financial and environmental & social returns perspective), enhancing the long-term sustainability of investee companies, meeting fiduciary duties, creating a differen- tiated market positioning and enhancing brand value. Our focus is specifically in driving initiatives in the areas of Employment Equity, Economic Empowerment and Environmental Sustainability.

B-BBEE

• In addition to providing accreditation in the ownership element of the B-BBEE scorecard, we work with portfolio companies to develop and implement sustain- able B-BBEE strategies that optimize impact as well as the entity’s scorecard po- sition particularly in the areas of management diversity, procurement (including enterprise and supplier development) and skills development.

We maintain a focus on acquiring meaningful interests in high quality medium sized businesses across industries, with a demonstrated track record of success evidenced by market positioning, high earnings quality and attractive overall returns on capital.

Our select businesses are driven by management teams of exceptional capability. In line with our pursuit for value unlock, we seek out businesses best positioned to benefit from both South Africa’s dynamic demographics and growth potential and Vuna Partners’ focused and hands on investment philosophy.

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Our Funding Solutions

Empowerment funding

• Executing on deal structures that enable fully funded B-BBEE empowerment credentials

Buyouts

• Replacement capital to exit existing shareholders
• Leveraged buyouts serviced by company free cash flows
• Funding of management buyouts

Management buy-in

• Partnerships with proven operational entrepreneurs to acquire high quality businesses

Growth capital

• Companies seeking capital for expansion through new markets or acquisitions

Outside of scope

• Developmental capital
• Start-up or venture capital
• Distressed or rescue capital

Investment criteria

Businesses prioritised display attractive business models

• High growth potential medium sized companies
• Strong and sustainable profitability
• Businesses with strong cash flows
• Competitive advantage demonstrated by pricing power and strong brands
• Consolidation potential to improve operating margins and expand market share
• Strong and experienced management team

Wide sector focus to support a diversified portfolio strategy, with an emphasis on the following sectors

• Financial services
• Education
• Industrials
• Information, Communications and Telecoms
• Food and beverages
• Healthcare

Defined sectors outside of scope informed by less sustainable investment principles or cyclicality

• Tobacco
• Alcohol (specifically hard spirits)
• Weaponry
• Primary mining (excluding mining value chain support companies)
• Primary agriculture (excluding agri-processing and agriculture value chain support companies)
• Construction

Size requirements

• Entry – R40 million with a view of supporting a consolidation strategy or follow on investment for growth
• Top end – Maximum R150 million to ensure portfolio diversification
• Entities generating operating profits of at least R40 million
• Minority or significant influence positions and board representation in investees to enable meaningful strategic influence

Jurisdiction

• South Africa – up to 100%
• Sub-Sahara Africa – up to 20%

Timely and informed investment process

Our investment process is agile and well informed, driven by our disciplined high response team, with the support of our exceptional and proven investment committee.

Initial Contact

Within a 3 to 4 weeks, we gather high level information with minimal intrusion to management and sellers’ resources, form a preliminary view on valuation and agree transaction parameters with management and sellers, and obtaining the support of our IC.

Due diligence and conclusion phase

Within 4 to 5 weeks, we conduct a seamless risk focused due diligence covering the company’s operations and market, financial, legal and tax matters with a view to obtaining IC approval, while running concurrently on legal agreements and relevant regulatory approvals.