South African private equity firm Moshe Capital Fund Managers aims to invest up to R350-million in manufacturing, industrial and mining products or services and secondary agriculture in South Africa, says Moshe Capital founder and CEO Mametja Moshe.
The company predominantly invests in established businesses with enterprise values of R200-million or more. Despite economic challenges, there are several opportunities for investment and growth in various sectors in South Africa, she notes.
Moshe Capital’s investment approach seeks established businesses based primarily in South Africa, but with the potential to grow into sub-Saharan Africa and internationally.
“When considering investments, we look for a record of at least three years of consistent returns and earnings before interest, taxes, depreciation and amortisation of more than R25-million,” says Moshe.
The firm has secured a funding commitment from FNB Commercial and has entered into a partnership agreement with RMB Ventures, both of which are divisions of financial services company FirstRand Limited. The calibre of funders makes it possible to increase available funding should a detailed assessment process reveal compelling prospects.
The degree of active involvement in each investment differs depending on the potential and requirements of each business.
Moshe Capital is sector agnostic and is looking to enter into long-term partnerships.
“We believe in entrepreneurship by partnership. We are keen on businesses that provide returns on investment of more than 25% over five years or more. We fully appreciate that Covid-19 has had a negative impact on the valuation of most companies and will take that into account when evaluating opportunities,” she says.
In addition to funding, private equity partners add significant value in other areas. These include serving as sounding boards for business strategy, assisting with further expansion or additional liquidity, and navigating difficult economic realities like those brought about by Covid-19.
“We have worked closely with our existing partners over the past year to recapitalise balance sheets, improve the robustness of cashflows and even pivot businesses into new areas,” says Moshe.
Moshe Capital prefers to invest in qualifying businesses with a commitment to job creation, economic empowerment and with social and environmental impact. Given that businesses need to be established with a proven record, the company is not looking to invest in startup and green fields businesses, or business rescue and turnaround cases. Enterprises can obtain more information on Moshe Capital's website.