Strategy

The SSAF’s investment strategy is to achieve significant capital appreciation, primarily by focusing on top quartile Pan-African private equity teams with established track records and presence on the ground.

The SSAF will invest primarily in funds but may also selectively make direct investments (principally co-investments in portfolio companies alongside fund managers). Alternatively, it may acquire its investment positions directly through secondary market purchases.

Investments occur across the full capital spectrum from growth capital, buyouts, PIPEs, greenfields, brownfields, mezzanine, structured debt, property and special opportunities (pre IPO’s).

South Suez Capital will use its proven portfolio management techniques to allocate, commit, call for and invest the funds with the aim of maximising returns to shareholders. Through the holders of shares, investors will expect to gain exposure to the following three types of private equity investment strategies, namely:

Primary Investments

Commitments to private equity funds during their initial fund-raising, with a fund target of 80% of its total capital commitments.

Secondary Investments

Purchases of private equity fund interests after such funds’ initial fund-raising and after some or all capital has been invested by such funds, as well as purchases of portfolios of interests in operating companies.

Direct Investments

Direct purchases of interests in operating companies, with a fund target of 20% of its total capital commitments.

Due Diligence

SSC believes its due diligence process is iterative and efficient. It aims to test and verify the robustness of the investment proposition. This involves frequent on-site meetings with the fund manager, reference checks, quantitative analysis and rigorous legal due diligence. SSC believes it is important to make effective use of the fund manager’s time during the due diligence process, focusing on relevant issues rather than a generic list of items to be covered in meetings. The due diligence process aims to identify and reach conclusions about the particular issues relevant to that specific fund, at that particular time.