CONFIDENT.
INSPIRED.
VISIONARY.
Investment Philosophy
Hlayisani’s investment philosophy is focused on the acquisition of either significant minority or majority ownership stakes in market leading, growth driven businesses and high potential, revenue generating ventures. Hlayisani invests in companies that:
- Are led by strong and visionary management teams
- Utilise innovative business models with proven scalable technology in large markets with export potential
- Demonstrate strong revenue growth and have significant client base potential
- Are potential market leaders or significant players in their respective target sectors or regions
- Are at growth or expansion stage
- Showcase identifiable exit opportunities.
- Incorporate profitable business models that result in significant socio-economic impact as set out in the UN’s SDGsustainable Development Goals. This includes:
- Eliminating poverty by Empowerment of previously disadvantaged groups
- Enabling and providing quality education
- Fostering the provision of decent work and economic growth
- Enhancing Industry innovation and the establishment of related infrastructure
- Supporting the growth of female entrepreneurs and management teams
- Job creation, reducing inequality and providing access to connectivity
- Enabling the creation of sustainable cities and communities
- Supporting and enabling responsible consumption and production
- Supporting governance structures that drive peace, justice and strong institutions
- Fostering viable partnerships to support the Sustainable Development Goals
- Appropriate measurement of environmental, social and governance (ESG) impact in and of the business
- Operate in the ICT, manufacturing, agriculture, education or health industries.
- Require an equity investment of between R10m and R100m
Unique Selling Proposition
SMEs – fuelled by entrepreneurial spirit – are the lifeblood of any economy, and in South Africa they account for 60% of jobs and 34% of GDP.
However, entrepreneurs often battle to grow their businesses, as this requires capital, and far too few companies are available to invest in mid-stage SMEs. Africa, as a whole, is a landscape with vast potential when it comes to helping SMEs grow. Yet, less than 1% of GDP in Southern Africa is invested in private equity.
As a result, a significant funding gap exists in the growth stage sector – businesses that are too big for venture capital funding, or need follow-on funding, but considered too small for traditional private equity investors. In fact, there is an estimated funding gap of between R86 billion and R346 billion because SMEs cannot unlock traditional financing.
Hlayisani Capital is uniquely positioned to operate in this vastly neglected space – partnering with these businesses every step of the way, unlocking global markets and new customer bases.