PRIVATE equity company Moshe Capital Fund Managers is actively seeking to invest R350 million into diverse companies with a solid presence in their sectors, including agriculture.
Founder and CEO Mametja Moshe said the firm has secured a funding commitment from FNB Commercial and has entered into a partnership agreement with RMB Ventures, both divisions of FirstRand Limited.
“Despite economic challenges, there are several opportunities for investment and growth in various sectors such as manufacturing, industrial, mining products or services and secondary agriculture in South Africa. We predominantly invest in established businesses with enterprise values of R200 million or more,” she said, adding that the calibre of funders makes it possible to increase available funding should a detailed assessment process reveal compelling prospects.
Moshe Capital Fund Managers is a wholly owned subsidiary of Moshe Capital and is 100% black women owned. Moshe Capital currently has four investments across various sectors. Named by ABSIP as corporate finance team of the year in 2019, 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 track record of at least three years of consistent returns and EBITDA of above R25 million,” said Moshe.
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 investments 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.”
In addition to funding, Moshe said 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’ve 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.”
Moshe said the firm preferred 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 track record, Moshe is not looking to invest in start-up and green fields businesses, or business rescue and turnaround cases.
