PHILOSOPHY AND APPROACH
Our investment philosophy and approach has been developed over time from within the private equity, investment banking and M&A advisory industries, both in Sub-Saharan Africa and Europe, and our expertise covers the full spectrum of the private equity value chain, equity and debt capital markets, credit structuring as well as operational experience.
We use our extensive network among business owners, exceptional managers, industry experts and leading advisors to gain early access to high-quality opportunities and outstanding management teams.
A standout strength lies in our ability to build collaborative and impactful partnerships with the management teams of investee companies and other key stakeholders – a strength that served Salt Capital well in the past.
We identify companies that have a defensible market-leading position in their sector and region, or the capability to become market leaders with a requirement for expansion capital.
We adopt an open and flexible “Partnership Approach” by backing strong management teams with proven ability, a comprehensive understanding of and exceptional experience in their relevant sectors.
The Ripple Effect is a key feature of Salt Capital’s investment strategy. We invest in Sub-Saharan Africa in a socially responsible way and generate superior returns for our investors. We believe that private equity investment in Africa cannot simply be guided by profit and must also reinforce the broader aims of social responsibility, human development and good governance. We firmly believe, given the nature of the region, that investment returns and regional development need to work ‘hand-in-hand’.
MANDATE AND STRATEGY
- We deploy equity cheques of between US$5m to US$15m, with an average deal size of US$10m
- We consider each investment opportunity on a case-by-case basis but typically target a shareholding of between 26% to 65%, which we believe gives us a sufficient equity shareholding to exert an appropriate degree of influence
- We target an investment horizon of four to six years
- Historically we have invested in the SADC region, but have also focused on opportunities in East and West Africa
- Going forward, we will continue to consider the right opportunities in the broader Sub-Saharan Africa region
- We predominantly focus on businesses that require growth or expansion capital
- We do however have the flexibility to deploy funds for unlevered buyouts with follow-on investment potential
- We invest alongside management (partner approach)
- We do not consider greenfield investments
- We follow a generalist approach but with a strong preference for the food, beverages and key consumer facing sectors
- We do not however invest in primary agriculture, resources, primary mining, real estate and infrastructure deals
- We embrace the principles of Environmental, Social and Governance (“ESG”) in our investment approach which remain core to our culture, identity and success – the “Ripple Effect”
- We use the United Nations Sustainable Development Goals as guidance for our developmental benchmarks
- Salt Capital has first-hand experience of the positive contribution of ESG/SDG considerations to our investment philosophy