Investment

Our philosophy is to look for the intrinsic value of strong business growth and sustainability through different economic cycles:
• Impact Investing
• Investment Process
• Portfolio Management

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IMPACT INVESTING

We invest directly into companies with strong business propositions, visionary leadership and high growth potential, intent on generating measurable societal impact alongside financial returns.

We uncover value by identifying potentially great companies. We enhance their performance by providing patient capital and operating support to management teams. Our goal is to help portfolio companies grow core businesses, launch new initiatives and make transformative decisions to support their long-term strategy.

We aim to work with ambitious entrepreneurs, and those that have track records of success. We believe that the mix of our industry knowledge, investment experience, and operational expertise helps to create value and opportunities.

Our investment strategy incorporates innovative asset allocation, driven by impact and returns, We provide more than just capital.

We seek to make the companies we invest in stronger through a strategic transformation. Crucially, we bring the expertise of our Portfolio Management Team to provide strategic guidance on operational improvements including revenue growth, leadership development and technology optimisation.

 

OUR PHILOSOPHY

CAPITAL PRESERVATION. RESPONSIBLE INVESTMENT. SUSTAINABLE GROWTH

INVESTMENT PROCESS

We use proprietary technology to speed up the investment process down to 3 months from sourcing, screening, due diligence before the close of a deal. Businesses under consideration are advised to prepare with a strong proposition and business plan.

 

Deal Sourcing, Pre-screening and Preliminary Review

In the early phase of the process we target investees that have “vision fit” to ensure that those seeking funding are aligned with our core mission, values and goals. We emphasise scalability as well as societal impact to determine sustainable and robust business models. A preliminary review will ensue to evaluate the business plan and engage with the entrepreneurial team. We seek the approval of the Investment Committee to progress with a deeper evaluation of the business and social impact plan as well as management meetings and company visits.

Due Diligence, Valuation and Term Sheet Negotiation

Following on, we carry out business valuation, deal structuring and term sheet negotiation. We will usually communicate via letter of intent of invest. The target must be able to successfully pass capabilities and risk assessment and meet the requirements of our due diligence checklist. This phase results in an investment memo that is again presented to the Investment Committee for approval in order to close the investment. The Executive committee will then sign-off legal documents and guarantees to facilitate approval and transfer of the payment.

Implementing Successful Exit Strategies

An vital aspect of our approach is the need to have robust post-investment strategies in place. Options for exit are clarified and agreed upon during pre-investment deal execution. These may include management buy-outs (MBOs), secondary market sales IPOs and trade sales. To maximise returns, timing is key. In some cases, we advise our portfolio companies to identify and implement appropriate actions to optimise the value of the business.

Targeted Sourcing of Investment Pipeline

Sourcing quality pipeline is about finding ways to access a selection of potential deals that fit our firm’s values and strategy. We work with trusted partners with the aim of sourcing high-quality investment opportunities. At regular pipeline meetings we review potential opportunities and determine what resources are best suited to pursue them.

With many years of operating experience, our team has gained substantial experience in structuring successful direct investments. We mitigate risk through robust deal structures and disciplined processes for sourcing, performing due diligence, and executing on each investment. For quality deal flow, we leverage our relationships, expertise and proprietary channels to facilitate the allocation of capital to the most efficient sectors to improve risk-adjusted returns.

Our Principles of Responsible Investing

We recognise that investee businesses need assistance beyond capital, such as practical environmental, social or governance (ESG) guidance and investment in human capital. As a responsible investor, helping companies achieve good standards of governance, along with strong environmental and social policies, is an important part of how we add value. As a firm we regularly evaluate how best to incorporate ESG considerations into our investment process to conscientiously invest on behalf of our clients.

 

TESTIMONIALS

An accomplished professional advisor with strong expertise in corporate finance and major project management. He was collaborative, decisive, and had strong consulting and strategic planning skills.
Chief Revenue Officer, Technology Co.
They bring immense knowledge, professionalism and zeal to every project collaboration and economic development initiatives in Africa.
Manager, Big4 Firm
They showed great initiative and commitment in planning and executing a highly successful project. The ability to collaborate effectively and oversee various aspects of the implementation were integral to this outcome.
Consultant, McKinsey

PORTFOLIO MANAGEMENT

Benchmark Value Creation and Progress

We require all investees to adopt environmental, social and governance best practice, and to carry on their businesses in compliance with all applicable local and international laws. We also undertake development impact evaluations and seek to design our investments to ensure maximum development impact for rural communities is achieved. Whilst we remain committed to working with applicants to guide them through all stages of the process, equally we are not willing to compromise on this process, nor our terms of business.

Value-oriented Discipline

In determining value for new investments, we focus not just on a business’s current outlook, but its future prospects over the long-term. We factor in what we can do for the business to drive even better outcomes post-investment involving hands-on portfolio management, plus ongoing monitoring and performance evaluation to ensure that both financial and socio-economic returns are met.

Transformational Operational Improvements

We actively seek companies in which great value can be created through clear strategic and operational change. When we have taken a more hands-on approach, we help management design and execute a long-term plan to become more productive, efficient and valuable through regular performance review, strategic forecasting and proactive risk management.

IMPACT ASSESSMENT

Our impact framework enables the full lifecycle of an engagement

As impact investors the focus on development, environmental and social impact is at the core of our activities, and a critical aspect in our investment process and deal analysis for every business opportunity. A key objective of this management framework is to support deal teams to assess and manage the impact of pipeline and portfolio organisations, thereby providing transparency and insights to learn and improve the effectiveness of solutions.

Monitoring, Measurement and Validation of Societal Impact.

Portfolio organisations provide updates on their impact performance as part of post-investment monitoring. Performance data is stored in our social impact data management tool. This reporting process ensures regular assessment of performance against targets. A hands on approach enables us to:
■ Collaboratively learn and improve the impact of solutions
■ Adhere to good governance principles to achieve our mission.
■ Evaluate agreed stakeholder output and outcome indicators.