Africa, particularly Southern Africa has for some time been seen as the next frontier for economic growth. South Africa is perceived globally as the primary investment gateway into the rest of the continent, however this perception is gradually being eroded by the introduction of tax incentives and ease of doing business practices in countries such as Mauritius and Rwanda in order to attract foreign capital. We aim to springboard from this platform and deploy capital into enterprises operating successfully within the various sectors of the economy including agriculture, manufacturing, logistics, healthcare, industrial, technology, financial services, FMCG and food-related activities in South Africa, with up to 20% of Total Commitments capable of allocation outside of South Africa. We will invest in scalable businesses with strong management teams, which have proven credentials and are able to evidence strong historical performance that are sustainable. We believe in partnering with management and working towards a common goal.
Our investment strategy as set out below is unique, transparent, focused, consistent and aligned to satisfy the needs of all our key stakeholders:
- To have access to unique proprietary deal flow: We have the ability to access unique investment opportunities outside the mainstream. Through our experience and key partners we have direct access to investment opportunities within the mid-market and private space. Pallidus, Talis and Fledge as our partners operate independently but have significant access to a number of proprietary investment opportunities that most fund managers do not have. We are uniquely placed to access this pipeline of potential investments which spans across multiple industries;
- BBBEE status: We use our Black fund manager status to gain access to investment opportunities or favorable transaction terms;
- Using our execution capability to secure the investment: We are uniquely placed to leverage off the execution capability and capacity of Pallidus thereby allowing us to successfully invest and conclude transactions on favourable terms;
- Active value adding investment strategy throughout the investment period: Through our extensive networks and key partners we have the ability to add significant value to portfolio companies through introductions and facilitation of organic growth opportunities or value adding corporate actions;
- Facilitating exits to maximise value: Exits need to be well timed and facilitated to ensure value is maximized for investors. This process will be effectively driven and managed through our various exit contact points and strategies. Exits will be facilitated, with the assistance of Pallidus, through various means ensuring we meet our pre-planned exit targets; and
- Geographic focus: In addition to investments in South Africa, the executive management team have strong networks in the broader Sub-Saharan African region and will leverage these networks to look at opportunities to invest into portfolio companies (limited up to 20% of the Total Commitments) outside South Africa through a dual approach: 1) “Go-to-Africa” strategies within our South African portfolio companies (initially the main thrust), and 2) Direct investment alongside a local partner in selected Sub-Saharan Africa countries outside of South Africa, as networks and experience unearth attractive opportunities.