SADC -WIB Investment Company
The approach is simple:
Investment Focus Sectors
- Water Infrastructure
- Energy AND Renewable Energy
- Mining
- Manufacturing and Processing
- Transport and Logistics
- Agriculture
- Information and Communications Technology
SADC-WIB will raise own Capital from its shareholders and/or raise debt or equity from Funders. The nature of our own capital provides us with a distinct advantage: we are able to focus solely on identifying the best ideas, allocating sufficient time and resources to conduct thorough due diligence, and responding nimbly to opportunities. Apart from sourcing companies, projects and/or investment opportunities in the four main focus areas, we are also flexible in considering and assessing other companies around the globe subject to meeting our due diligence requirements in respect of other investments opportunities.
Concentration where and when required, combined with diversification where and when required and a deep and exhaustive knowledge of the companies and sectors or markets in which we invest, mitigates our risk and necessitates a highly innovative portfolio. We believe that culture drives innovation, destiny and success. For this reason, we take great care in selecting the very best people to work in the firm. We look for people with a hunger to succeed and a passion to serve; people committed to excellence, who are eager to build our business and their careers with us over the long term
Investment Process
Our Private Equity team employs a focused and systematic investment process, creating value through rigorous analysis and selection of prospective investments, proactive portfolio monitoring and management and carefully identified exit strategies. The process adopted with respect to assessment of investment opportunities envisages six stages:
- Origination
- Initial screening and preliminary discussions
- Due diligence and negotiation of the key terms
- Structuring and closing
- Business planning, monitoring, support and value creation
- Exit
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We believe that active involvement is the driver for turning locked-up potential into real and tangible value. We will, therefore, adopt an active role in each Portfolio Company to ensure value creation while minimising disruption to normal business and management activities. Exits in investments may be completed through an Initial Public Offering (“IPO”), private placement prior to an IPO, a financial or a trade sale to another fund or private equity company or to strategic investors. We will decide on the appropriate exit route providing the highest possible returns for investors and our own proprietary investments in conjunction with the management team of the portfolio company and other associated shareholders. We employ a range of investment styles and work with management teams to structure transactions that reflect the risks and opportunities associated with each portfolio company. Investment structures may include common equity via private placements or proprietary investments, debt, Islamic debt, convertible debt, bridge loans, mezzanine finance and credit support
Investment Approach
We use a disciplined investment approach to evaluate potential transactions and constantly review and reassess our portfolio companies and the markets they operate in. Potential portfolio companies must demonstrate the ability to generate sufficient cash to ensure recovery of the invested capital in a commercially reasonable period, whilst the growth strategy is implemented, and throughout the investment period. Through our international network and on-the-ground presence in multiple jurisdictions, we seek to identify attractive investment opportunities that benefit from the long-term attractive fundamentals of the market they operate in.
Investment Philosophy
Our investment philosophy is to invest in companies that typically have strong management teams, a scalable business model and the potential to become a regional leader in their respective fields or markets. The companies should be profitable or have the potential to quickly realize profit, should have been incorporated for at least two to three years or have a business plan that can demonstrate profitability and pass our rigorous due diligence processes. The envisioned value creations we offer our portfolio companies are proprietary deal sourcing, business expansion opportunities, legal and regulatory assistance, corporate structuring advice and assistance,
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tax advice and assistance, financial reporting modeling, support and advice, back-office support and advice, IT support and advice, regional synergies and industry consolidation. A typical holding period for an investment of a portfolio company would be 3-5 years although we often evaluate potential investments with both a shorter and/or longer holding period.
We generally have two categories of investments, core investments and strategic equity investments. Core investments range from approximately $2 million up to approximately $50 million, although we also have the interest and capacity to lead an investment in a single transaction much larger figures dependent on the type of transaction and the commercial terms. Our core investments may utilize proprietary capital and/or use external investors. Strategic equity investments are made in amounts of as little as $1 million. They are made in companies of interest us which may not meet all investment criteria for larger investment, or which may not have an immediate need for a larger investment. We make strategic equity investments in situations where an opportunity is identified for a material follow-on investment in the future.
Investment Strategy
Our strategy is to identify quality and fundamentally strong portfolio companies with appropriate valuations or potential to implement on a commercially sound business plan. The investments we will consider range from concept stage businesses through to established companies in need of growth capital or alternative funding arrangements. Innovative and flexible funding options are available and we provide financing tailored to the strategic goals of each portfolio company. The nature of private equity provides significant scope to tailor an investment to suit the requirements of the portfolio company and our investment requirements.
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We employ a range of investment styles and work with the management teams and other shareholders to structure transactions that reflect the risks and opportunities associated with each portfolio company and/or investment case.
In addition to providing funding to progress a specific project or the portfolio company’s strategic objective, we add greater value in many ways:
In addition to providing funding to progress a specific project or the portfolio company’s strategic objective, we add greater value in many ways:
- We provide ‘patient’ capital and remain committed to strategies irrespective of short-term market sentiment.
- With our first-hand industry experience across multiple sectors and jurisdictions, our management team has extensive experience in the development, implementation and operation of portfolio companies large and small.
- Complemented by deep technical, financial, legal, regulatory and market expertise, our team members have lived and worked globally and held multiple senior positions.
Our Partners
