South Africa Investment Approach

Investment approach

Capricorn has developed a rigorous approach to identifying and making investments that involves effective due diligence, strong expertise in transaction structuring and financing, a focus on strategic and operational improvements, and the creation of partnerships.

Every transaction is subjected to extensive analysis and discussion. Only a handful or potential transaction opportunities ultimately become portfolio investments.

Capricorn is not a fund and therefore has no time pressure to exit investments. This aligns our interest with our partners and enables us to build long term partnerships where decisions are made for long term mutual value generation, rather than short term profit maximisation.

The core investment principles of our private equity business are:

Fundamental Value

We seek to identify cash out-of-favour, under-appreciated industries, or companies with stable cash flows that can be purchased at the right price. We take advantage of industry trends before they become widely appreciated.

Pro-active Investment Approach

We look to play an active role in all portfolio investments providing board supervision and value-added strategic and operational support.

Partnership

In all cases, Capricorn executes friendly transactions with the full support of the company that we look to invest in. We understand that managers need a level of operational autonomy; our portfolio company managers own the results of their decisions.

Preference for Exclusivity

We focus on the development of transactions that are exclusive to Capricorn. Our strong relationships with corporates, BEE parties, and investment banks allow us access to proprietary opportunities.

Alignment of Interests

We recognise the importance of aligning Capricorn's interests with those of our investors and executive operational teams. Capricorn employees and senior managers within the portfolio companies invest their own capital in the businesses.