We have a history of partnering with family and owner-operated businesses, operating in diverse sectors, that seek a like-minded investor that plays an active role in developing the business while maintaining the entrepreneurial flair, agility and legacy of the founders.
Our approach
High response. Hands on.
Our high response execution capability is supported by our collective experience spanning over 10 decades, across varied industries and market cycles. We collaborate closely with management teams in formulating strategies and executing value-enhancing initiatives.
High-performance management
We establish enduring, mutually beneficial relationships with like-minded management teams in our businesses. We strengthen the long-term strategic alignment through facilitation of ownership for our management teams.
Bespoke partnership
Our model is adaptable to bespoke company needs. We leverage a network of operational partners with strategic insights to strengthen key operational and business development functions and ultimately unlock value.
Sustainable transformation
We are committed to responsible investment as a driver of sustainable businesses and means of facilitating long term value creation.
Our process
Deal origination
We identify opportunities through our operational partners and advisors, and by engaging our strong personal network of private equity and BEE peers, as well as other on-balance-sheet investment holding companies. The opportunities are screened in terms of financial viability, sector positioning and ESG exclusions and risks, to ensure adherence to our investment criteria.
Valuation and analysis
Within 3 to 4 weeks, we gather high level information with minimal intrusion to management and seller’s resources, formulate a preliminary valuation and agree on transaction parameters. We obtain initial support from our Investment Committee via a discussion paper outlining management skills, industry and competitor analysis, financial review, capital structure, critical risks, projected returns and exit alternatives.
Due diligence
Within 4 to 5 weeks, we conduct a comprehensive due diligence review to identify material risks and areas that underpin the investment strategy. The review covers the company’s operations, market, financial, legal, and tax matters, as well as ESG considerations. Simultaneously, we identify matters to be addressed post-investment via an action-oriented plan and value-add strategy.
Close-out
A detailed investment paper is presented to the Investment Committee that expands on the investment case and value-add strategy, and which addresses due diligence findings and matters connected to transaction agreements. Concurrently, legal agreements are developed and relevant regulatory approvals are sought.
Value add implementation
Following final approval and close-out, we implement the post-investment value-add strategy as defined during the due diligence phase. We actively participate in transformation initiatives, succession, strategy formulation, corporate finance, budget and forecasting processes.
External opportunities
As the value-add strategy takes effect, we work with portfolio company management to identify mutually beneficial exit opportunities and alternatives.
Our investments are predicated on stringent size, sector and sustainability criteria.
Business model requirements
High growth potential
Strong and sustainable profitability
Strong cash flows
Competitive advantage demonstrated by pricing power and strong brands
Experienced management team with strong capital allocation discipline
Sector focus
We adopt a wide sector focus with specific emphasis on the below areas, in support of a diversified portfolio strategy.
Financial services
Education
Industrials
Manufacturing
Logistics
Information, communication and telecoms
Food and beverage
Healthcare
Size requirements
We pursue companies that can adhere to the following criteria
Entry – R 40 million, allowing for follow-on investments to fund growth
Maximum R 150 million to ensure portfolio diversification
Entities generating operating profits of at least R 20 million
A maximum enterprise value of up to R750 million
Minority or significant influence positions and board representation in investees to enable meaningful strategic influence
Jurisdiction limits
South Africa - up to 100%
Sub-Saharan Africa - up to 20%
The following sectors fall out of scope
Tobacco
Alcohol excl. wine and beer
Weaponry
Primary mining excl. mining value chain support
Primary agriculture excl. agri-processing and agriculture value chain support