M Capital

"
Established in 2004, M Capital is a South African-based private equity firm focused exclusively on the property sector in Southern Africa.

M Capital is considered unique for the following reasons:

• M Capital focuses exclusively on the property sector in Southern Africa,
• The investment by M Capital is project-specific, not company-specific (thus drawing on the vast property and banking experience of the firm’s Investment Committee to thoroughly evaluate and understand the underlying asset prior to committing to the investment),
• M Capital operates in a niche range of between ZAR2,0 million and ZAR20,0 million per investment enabling the firm to provide a rapid turnaround time, and
• M Capital generally prefers to get involved in transactions with shorter loan periods (3 months to 18 months maximum)...."

http://www.mcap.co.za/html/about.asp

Hibridge Capital

"

• Hibridge is a unique, owner managed investment management and services business with a track record of delivering:
  • positive non correlated returns;
  • robust, independent advice; and
  • tax efficient and proficient establishment and management of offshore structures.
• Proprietary "off market" investment opportunities, not available through traditional investment houses, are sourced through a broad network of relationships. We are not constrained in our investment approach by size, geography or asset class
• Since 2003, Hibridge has invested over £55 million in private equity, property and secured debt investments (predominantly in Africa) for its clients and has been involved in corporate advisory transactions valued at in excess of £100 million
• The majority of our remuneration is received in performance equity rather than in fees. In addition, the founders invest their own capital in funds promoted by Hibridge Capital. As such, our interests are fully aligned with our clients

PRIVATE EQUITY

OVERVIEW

• Rather than being burdened by excess capital we prefer to raise funds for specific investment opportunities. In this respect, our philosophy is that if we serve our investors well they will support us in new ventures
• Our investors include large financial institutions and high net worth individuals
• The majority of our investments are proprietary, sourced through an existing network of personal contacts which has been developed over many years of investment banking and advisory business
• We take an eclectic approach to private equity - our skills are developed to adapt to an ever changing environment. As such, we are not focused on any single sector
• We are active in the development of our portfolio investments. We not only bring traditional skills like corporate finance and structuring to our portfolio companies but we also facilitate growth by introducing the management teams we back to our global network of contacts
• We invest in control positions with the following characteristics:
  • excellent management that are willing to make a meaningful investment in the business;
  • proprietary opportunities, we will generally not participate in a competitive sale process;
  • existence of a clearly understood and creative business plan that reflects highly visible profitability and growth; and
  • an identifiable exit strategy at the time of investment.
• We are happy to co-invest with other financial investors and work with them in a complementary way. However, we require representation on the Board and negative control.

SECURED DEBT

OVERVIEW

• Hibridge Capital sources, structures and arranges funds for secondary debt finance opportunities predominantly in Africa through MCapital its subsidiary operating in South Africa - see presentation.
• We have delivered investors double digit returns with a low correlation to any asset class since 2003 and throughout the economic difficulties since 2007
• All debt investments are asset and/or cash flow backed and secured by a charge over property and personal surety
• Average investment size is approximately £1 million and the average term is eighteen months
• We are acknowledged as having a robust credit culture and work with highly reputable law firms to implement transactions and execute security
• Investment opportunities are sourced through a number of partnerships with debt originators, professional firms and banks. To them we are a long-term creative partner able to structure debt that best matches the various needs of preserving equity, improving cash flow and reducing costs

WHY BORROWERS PAY "MEZZANINE" RATES

• Primary lenders typically lend between 50% and 80% of capital requirement
• The remaining capital must be financed by equity and/or mezzanine debt
• Borrowers generally use mezzanine debt funding for the following reasons:
• equity funding is scarce and more expensive in the long term;
• mezzanine debt increases returns to the borrower;
• mezzanine increases a borrower's capacity to invest in other projects and therefore facilitates a spreading of risk;
• a mezzanine partner provides the borrower with greater flexibility compared to an equity partner

CRITERIA FOR MAKING LOANS

• Borrower
• must be experienced with a demonstrable track record
• verifiable financial statements of project and borrower
• clean credit history
• must contribute equity
• defined exit strategy
• personal guarantee provided by borrower
• Financials/security
• no greater than 75% loan to value exposure
• return on project costs in excess of 35%
• charge over assets and pledge of shares
• personal surety
• restrictive undertakings
• borrower subordination
• Board representation
• Term of loan
• initial fees to cover legal, due diligence and closing costs
• average term 18 months
• generally no prepayment penalty
• interest rolled up

INVESTMENT PROCESS

Hibridge Capital has a structured and disciplined approach to managing exposures and achieving enhanced returns

SELECTED INVESTMENTS

Hibridge Capital has invested in a wide variety of transactions in the UK and South Africa exceeding £20 million.
We are recognised as one of the leading independent mezzanine finance operators in South Africa.
Our strategy is to only invest in high quality opportunities. In this respect, we fund less than 3% of the potential transactions made available to Hibridge Capital per annum...."

 http://www.hbcap.com/index.php

Kagiso Tiso Holdings

"Investment Approach

KTH (through its legacy companies KTI and Tiso), boasts a track record of investment performance and creating long term sustainable shareholder value. Historically, the group’s impeccable BEE credentials allowed them to partner with strong companies (as an empowerment partner) and assisted those companies to create wealth for all shareholders. As a result, KTH currently has a portfolio of investments comprising market leading companies across key sectors. With the creation of KTH, the group is now poised to leverage this experience to become a leading investment company across Africa.

KTH focusses on investing in companies in specific sectors with strong, involved management teams. We aspire to become active shareholders of reference in our portfolio companies, through participation at board level and the various sub-committees. These companies are generally, high growth or cash generative and meet our investment criteria of inter alia generating market related returns for KTH. We maintain a long term horizon and can therefore partner with companies through-out cycles without any pressure to exit.

KTH sees the African continent at its primary market and will seek to manage a portfolio spanning across various sectors on the continent.

We adhere to the strictest code of ethical and professional conduct as an organization and ensure that through our participation in various corporate governance structures of our investee companies, the highest standards of corporate governance are adhered to. KTH believes it can be a catalyst for the transformation of our society by assisting to drive a broad based transformation agenda in our portfolio companies. We are equally proud of the charitable work and social agenda of our key shareholders and seek to invest in companies that share these values..."

http://www.kagiso.com/about.php

Old Mutual Specialised Finance ("OMSFIN")

"Specialised Finance

Old Mutual Specialised Finance (OMSFIN) is a proprietary investment business and an alternatives investment manager. Through its capital market activities, OMSFIN delivers above-average, risk-adjusted returns for a predetermined level of risk to shareholders. 

OMSFIN’s two primary business areas include:

Trading and Structuring: This business is responsible for funding OMSFIN’s proprietary balance sheet activities. The team risk-manages OMSFIN’s portfolio using advanced hedging and portfolio structuring techniques, while taking advantage of any identified market anomalies. The Trading and Structuring team is also responsible for managing Old Mutual (South Africa)’s shareholder guarantees. They use interest rate and equity derivative products to hedge market risk and have been instrumental in reducing interest rate volatility while, at the same time, improving the performance and capital efficiency of the funds. Read more...

Asset Origination: This business participates in the South African capital markets – originating and managing assets for both Old Mutual (South Africa) and OMSFIN. The business operates across the structured finance continuum, offering financing in areas of structured debt, leverage, property, project and mezzanine finance. Read more ...

 http://www.oldmutual.co.za/corporate/asset-management/om-investment-group-%28sa%29/boutiques-and-units/specialised-finance.aspx

Utho

"Utho SME Infrastructure Fund

The Utho SME Infrastructure Fund was established by Utho Capital Fund Managers (Pty) Ltd. The fund achieved a first closing in April 2011 of R61.5 million with commitments from the Industrial Development Corporation (“IDC”), the Small Enterprise Finance Agency (“sefa” previously known as Sefa) and the founder Utho Capital. The Fund Manager is seeking to raise additional capital commitments to secure total fund commitments of R120–300 million.

The Fund seeks to achieve long term capital gains by investing in high growth Small and Medium Enterprises (“SMEs”) involved in “infrastructure development” which encompasses various types of businesses involved in construction, manufacturing, material suppliers, transport, logistics, power, renewable energy and property development in South Africa.

The fund has closed four investments West Coast Power Solutions (a renewable energy business), Bantsho Homes and Maintenance (a construction company), Richards Family Investment Properties (a property development company) and WHTP Construction. 

The challenge and opportunity for the fund is to identify small to medium sized companies with strong management and the ability to scale up rapidly with the right level of support, to enhance the portfolio companies’ value. Utho Capital Fund Managers will assist these businesses with not only the provision of capital but value-added committed and practical hands on business support services in respect of strategy, fund raising, financial controls and reporting..."

http://www.utho.co.za/ 

The Citizen Entrepreneurial Development Agency (CEDA)

"Background

The Citizen Entrepreneurial Development Agency (CEDA) was established by the Government of the Republic of Botswana to provide financial and technical support for business development with a view to promote viable and sustainable citizen owned business enterprises. CEDA was incorporated as a company limited by guarantee on the April 12th, 2001 and commenced operations in June 2001.

The company was established in response to a recommendation made by the National Conference on Citizen Economic Empowerment (NCCEE) held in July 1999, in order to introduce the professional management of the Government financial assistance initiatives and to streamline the numerous projects providing similar schemes. The Agency is established to address the need for coherent and holistic support for the development of small, medium and large scale enterprises through the soft window and package offered through the subsidiaries.

CEDA offers funding for capital expenditure, stock or working capital in new and existing business ventures. It also offers training and mentoring for new and seasoned entrepreneurs and business advisory services to entrepreneurs in various skills as identified through the needs assessment that is conducted during project monitoring.

Structure

The control of CEDA is vested in the Board of Directors appointed by the Botswana Government. The Board of directors consists of representatives from Government and Non Government agencies. In this way commercial sense balanced with the social responsibility of Government will come to bear on the operations of CEDA.

The key functions of the board of directors are to direct, monitor and control the strategic direction of CEDA, ensuring that sound business policies are practiced and the objectives of the agency are being met. The Chief Executive Officer assisted by the Deputy Chief Executive Officer (Operations) and Deputy Chief Executive Officer (Corporate Services) and Senior Management Team manage the company.

CEDA Products and Services

• Loan finance
  
• Equity
  
• Lease Loans
  
• Property Loans
  
• Credit Guarantee (short and long term instruments)
  
• Citizen Entrepreneurial Mortgage Assistance Equity (CEMAEF)
  
• Factoring and Invoice Discounting
  
• Business Advisory Services (Training and Mentoring)
  

http://www.ceda.co.bw/

Vuwa Investments

"Vuwa is a new generation investment holding company maintaining a portfolio of investments across a wide range of sectors. The company actively invests in healthcare, industrial, resources, energy and property among other opportunities..."

 http://www.vuwa.co.za/