Westbrooke Dynamic Opportunities is a hybrid capital platform positioned to take advantage of the dislocation in the availability of capital to the South African lower- middle market.
This dislocation has been driven by a significant reduction in lending activity by the traditional sources of finance, leaving companies in the lower-middle market with significant capital constraints.
This dislocation has been driven by a significant reduction in lending activity by the traditional sources of finance, leaving companies in the lower-middle market with significant capital constraints.
This presents a unique opportunity for Westbrooke Dynamic Opportunities’ investors to earn equity-like returns whilst benefiting from debt-like risk mitigation.
Westbrooke’s hybrid capital investments are concluded on a deal-by-deal basis across the capital structure, ranging from higher-yielding secured investments, to subordinated debt, PIK debt and structured equity. The strategy typically provides investors with an annual cash yield, as well as an equity upside / profit participation component.
key investment highlights
Attractive returns: target net IRR of 15%+– per annum – return typically comprises of a contractual coupon and variable type equity warrant / profit share
Contractual liquidity: investments benefit from contractual repayment terms providing investors with liquidity
Risk controlled: investments benefit from security and significant equity cushions
Tenor: typical investment term is 1 – 4 years
Market dislocation: limited appetite from traditional lenders to provide flexible funding to the lower-middle market
Track record: team with experience investing across the capital structure within diverse industries
    
