our investment criteria and approach

Investee businesses must operate structurally advantaged business models, delivering high returns on assets and strong cash flow and often operate in niche, fragmented industries where we are able to drive market consolidation, enhance competitive advantages and increase barriers to entry.

  • We invest in businesses
    with specific attributes
    which fit within our
    experience and expertise
    and where we acquire
    majority stakes.
  • We are active
    operational partners,
    driving success through an
    investment-led growth
    strategy
  • We have a track record of
    building great businesses
    • EBITDA of at least R25m / £3m
    • Structurally advantaged business model driving strong free cash flows
      • High cash return on assets managed
      • Low capital intensity (capex and net working capital cycle)
      • High gross profit margins, low costs and high EBITDA margins (or the ability to get there within our control)
    • Ability to grow revenue organically and through bolt on acquisitions at GDP plus inflation x 2
    • Likely to operate in a fragmented niche sector in the consumer (B2C) or commercial (B2B) space that can be built into a platform via bolt-on and adjacent acquisitions
    • A strong management team which can, where required, be enhanced by new management
    • Largely with predictable and / or recurring revenue streams selling relatively essential items to the customer
    • Will generally have financial metrics or characteristics that are better than industry average and which are relatively unknown within the industry
    • Platforms that can grow across geographies (nationally / internationally)
    • An ability for us to add strategic value, through an investment-led growth strategy

  • While management remain responsible for the day-to-day running of the business, we act as a strategic partner to assist the management team to achieve their strategic growth plans, including:

    • Strategic planning and support
    • Provision of permanent equity and a long-term investment mindset
    • Systematic consolidation via bolt-on acquisitions consolidating the industry (key is to systemise the investing and acquisition process)
    • Horizontal / adjacent acquisitions
    • Investment in the moat of the business
    • Vertical integration via organic growth or acquisitions
    • Investment in people
    • Channel and geographic expansion
    • Product and category extension
    • Brand and marketing investment and investment in customer data and systems
    • Digitisation
    • Investment into modern physical infrastructure
    • Increase sources of ‘interest-free’ funding
    • Introduction of key management as required and succession planning

  • Although we are permanent capital and invest for the long term, when we have exited, we have always exited to the largest or second largest trade player in the market (local and international), illustrating:

    • Our investments transitioning from good private businesses to dominant players in their niche
    • Value creation for all stakeholders
    • Consistent value creation over a long-term investment horizon

We invest in businesses with specific attributes which fit within our experience and expertise and where we acquire majority stakes.

  • EBITDA of at least R25m / £3m
  • Structurally advantaged business model driving strong free cash flows
    • High cash return on assets managed
    • Low capital intensity (capex and net working capital cycle)
    • High gross profit margins, low costs and high EBITDA margins (or the ability to get there within our control)
  • Ability to grow revenue organically and through bolt on acquisitions at GDP plus inflation x 2
  • Likely to operate in a fragmented niche sector in the consumer (B2C) or commercial (B2B) space that can be built into a platform via bolt-on and adjacent acquisitions
  • A strong management team which can, where required, be enhanced by new management
  • Largely with predictable and / or recurring revenue streams selling relatively essential items to the customer
  • Will generally have financial metrics or characteristics that are better than industry average and which are relatively unknown within the industry
  • Platforms that can grow across geographies (nationally / internationally)
  • An ability for us to add strategic value, through an investment-led growth strategy

We are active operational partners, driving success through an investment-led growth strategy

While management remain responsible for the day-to-day running of the business, we act as a strategic partner to assist the management team to achieve their strategic growth plans, including:

  • Strategic planning and support
  • Provision of permanent equity and a long-term investment mindset
  • Systematic consolidation via bolt-on acquisitions consolidating the industry (key is to systemise the investing and acquisition process)
  • Horizontal / adjacent acquisitions
  • Investment in the moat of the business
  • Vertical integration via organic growth or acquisitions
  • Investment in people
  • Channel and geographic expansion
  • Product and category extension
  • Brand and marketing investment and investment in customer data and systems
  • Digitisation
  • Investment into modern physical infrastructure
  • Increase sources of ‘interest-free’ funding
  • Introduction of key management as required and succession planning

We have a track record of building great businesses

Although we are permanent capital and invest for the long term, when we have exited, we have always exited to the largest or second largest trade player in the market (local and international), illustrating:

  • Our investments transitioning from good private businesses to dominant players in their niche
  • Value creation for all stakeholders
  • Consistent value creation over a long-term investment horizon