Our Investment Focus
Strategic Capital
for Sustainable Growth
INVESTMENT THESIS
Backing proven, capital-light businesses with strong growth potential
We primarily focus on providing expansion and replacement capital for businesses with a proven business concept and real growth opportunities and therefore do not look to provide angel funding and/or seed capital to start-up ventures. As such, we look to invest in capital-light companies that are already cash generative and avoid capital intensive sectors, such as mining and primary agriculture, as well as any industry we consider to be harmful. We also provide mezzanine debt funding to select businesses, but typically don’t provide such financing in the absence of an equity stake.
Whilst we are essentially sector agnostic and target a range of market sectors, we do have an affinity for financial services – it being the industry in which SAAD started as a private equity player. It remains a key focus area for the group today (practically all the members of our core team have occupied senior executive positions in listed financial services companies).
Investment Focus & Criteria
Our guiding principles for selecting and partnering with businesses positioned for sustainable growth
Proven Leadership Teams
Rationale: Partner with experienced, values-driven management teams capable of delivering sustainable growth
Indicators: Founders with significant skin in the game, proven track record of commercial success and ethical behaviour
Growth-Stage Businesses
Rationale: We back profitable businesses with a proven model and strong growth prospects, focusing on expansion and replacement capital, not start-ups
Indicators: ≥ R20m EBITDA
≥ R100m Revenue
Sector Focus
Rationale: Sector agnostic, with an affinity for financial services we leverage deep experience in this sector. We also consider businesses with understandable models in other industries. We don’t invest in primary agriculture and mining
Indicators: Financial Services opportunities and other understandable business models independent of sector
Innovative Investment Structures
Rationale: Tailor deal terms to fit stakeholder preferences and company objectives as best as possible, combining equity with mezzanine debt in select cases
Indicators: R30m – R60m+ equity cheque; mezzanine debt only with equity
(Larger cheque sizes on high conviction opportunities)
Capital-Light & Cash-Generative Models
Rationale: Focus on businesses that generate strong sustainable cash flow and have a preference for capital light business models
Indicators: High ROE and cash conversion rate
Geographic Focus
Rationale: For now, we only invest in South Africa, as we still see large scale investment and commercial opportunities in the Republic
Indicators: SA domiciled companies
Influence & Partnership
Rationale: We prefer to add value beyond economic capital through our expertise, networks, and relationships ensuring alignment with management. We are open to co-invest alongside like-minded investors
Indicators: Active investor with significant minority shareholding and board seat
Portfolio Companies
Businesses we’ve partnered with to create long-term stakeholder value
Compass Medical Waste Services
Compass Medical Waste Services is fully equipped to manage the end to end process of healthcare risk waste containment, transportation, treatment, and disposal.
Computer Mania
The Computer Mania Group is a privately held information technology business tracing its origins back to the early 90s.
Float
Float is a South African Buy-Now-Pay-Later platform that enables consumers to split purchases into up to 24 interest‑free instalments using their existing credit cards.
Grassroots Group
The Grassroots Group is a niche agri-processing company that supply local and international markets with quality natural, health, and lifestyle products.
HisWay Labs
HisWay Labs develops TrackView™, a solar-powered IoT platform that provides real-time rail condition monitoring and train detection.
INOVO Telecom
INOVO offers contact centres a flexible way to service, sell to, or collect from customers, across any channel.
JobJack
Jobjack provides a marketplace for entry-level jobs – an online platform connecting employers and job seekers.
Linea Capital
Linea provides revenue-based financing to high-growth entrepreneurs in Southern Africa, offering non-dilutive capital in exchange for a share of future revenues.
Mettle Specialised Solutions
Mettle is a specialist financial services company whose business units include credit services, debtors finance, medical finance, sponsor services, and corporate and specialised finance.
Paladin Technology
Paladin Technology is Africa’s leading agrifood tech group. They invest in privately-owned agrifood companies with the potential to transform the African agrifood sector.
Pargo
Pargo facilitates accessible, affordable, and reliable delivery of parcels through a tech-enabled network of parcel pick-up points.
Power Group
The Power Group’s purpose is both simple and enormously complex: to improve the quality of life in Africa, through infrastructure development.
Tafelberg Furnishers
Tafelberg Furnishers was founded in 1963 and is one of the biggest independent retailers in the Western Cape, with branches in Gauteng and KwaZulu-Natal.
THINK.CAPITAL
As a boutique asset manager, THINK.CAPITAL has provided clients with alternative investment solutions since 2014.
True South Actuaries and Consultants
True South Actuaries and Consultants is a 100% black-owned (level 1 BEE) consultancy that was born at the start of 2001 and has since become one of the largest, independent providers in the region.
WastePlan
WastePlan was founded in 2003 and provides waste management services, specializing in the minimization of waste streams and collection of recyclable waste in South Africa.
Westcor
Westcor, founded by Malcolm Westmore, is a niche market leader that works with the best retailers in South Africa.
Recent Transactions
Following the acquisition of the global DB Schenker group by DSV, LIV Equity (managed by SAAD Investment Management) sold its shareholding in DB Schenker Campus to DSV. The shareholding in DB Schenker Campus was acquired in a BBBEE transaction in 2016.
SAAD and its co-investment partner, Invenfin, acquired a significant minority stake in Float - a South African BNPL player which utilises existing under utilised credit card facilities at zero cost to the consumer.
Acquired minority interest in Linea Capital Partners who provides revenue based financing to high-growth ventures.
SAAD recently concluded it's 3rd transaction in Westcor Holdings and the group and related entities now own a majority stake alongside strategic co-investor and retail industry expert.
SAAD invested in Wasteplan, provider of waste management services and recyclable waste in SA. One of the largest sorters and recyclers in SA with national footprint.
SAAD and its co-investment partner, Invenfin, acquired significant minority stake in Float - a South African BNPL player which utilises existing under utilised credit card facilities at zero cost to the consumer.
Acquired minority interest in Linea Capital Partners who provides revenue based financing to high-growth ventures.
SAAD invested in Wasteplan, provider of waste management services and recyclable waste in SA. One of the largest sorters and recyclers in SA with national footprint.
SAAD acquired a significant minority interest in Westcor Holdings, a privately held retail business that sells fashion accessory products, across various categories, in partnership with some of the best retail groups in South Africa. Our co-investor on this transaction is a retail industry expert.
Acquired a minority interest in Agventure, a leading agrifood tech investment group, with an exciting portfolio of growing investee companies.
SAAD and its co-investment partner on this transaction, Ipic Properties, collectively acquired a significant minority interest in Tafelberg Furnishers, one of the biggest independent retail groups in South Africa.
SAAD and its ad hoc co-investment partner on this deal, Fortuna Investment Holdings, collectively acquired 30% of the issued share capital of the Computer Mania Group, a privately held information technology retail business.
Invested alongside management in a newly formed holding company, Mettle Holdco (Pty) Ltd, which owns various South African assets that were acquired from recently delisted Mettle Investments Limited (now renamed Genfin Investments Limited).
Invested in Jobjack, the online marketplace for entry-level jobs, on behalf of the Tree of Life Impact Portfolio.
Acquired a non-controlling stake in INOVO, a leader in the provision of hosted contact centre technology, in a deal that includes a BEE component.
Invested a combination of equity and debt to fund the continued expansion of Future Media Group, which provides digital publishing, media and content management services to a number of blue chip local and international clients.
Acquired a significant minority holding in Pargo, the high-tech last-mile logistics and fulfilment company with a footprint of more than 2000 pick-up points.
Invested in Compass Medical Waste Services, together with Gap Capital.
A BEE deal with DB Schenker South Africa on behalf of LIV Equity.
Acquired a significant minority stake in the award-winning hedge fund of funds manager Think Capital.
Have any questions?
If you have any questions or require further assistance, please don’t hesitate to get in touch. Our team is here to help.