Our Approach
We invest equity capital in small and medium-sized businesses with good profitability and strong market positions in Africa’s growing markets. We have a decentralized governance structure where we empower strong management teams and provide help and guidance when needed.
Overview
We invest equity capital in small and medium-sized businesses with good profitability and strong market positions in Africa’s growing markets. We have a decentralized governance structure where we empower strong management teams and provide help and guidance when needed.
How We Work
We look for businesses that can evidence good financial performance and strong positions in their respective markets. The continued value creation will be achieved jointly with the management team without interference from us at Kegax Holdings. We allow our portfolio companies to continue to operate independently with us as a sounding board with a perpetual ownership mindset.
Decentralization
Our model is predicated on working with independently managed companies where the leaders maintain autonomy. Therefore we focus on ensuring that the portfolio company leadership provides opportunities for ambitious and driven individuals who shall thrive in Kegax Holdings’ portfolio companies.
Alignment of Interest
We aim to ensure that management teams act with their company’s interests best in mind, therefore we align owner’s long-term incentives with management. We encourage investment by management teams and key individuals in their respective companies and enable individuals to invest alongside us. We pride ourselves with transparency and alignment of interests between investors and portfolio companies and believe this approach makes people work toward a common goal and focus on developing the company.
Speed of Execution
We work with the management teams of the respective companies in which we invest and pride ourselves in being an active or agile owner that enables speed of execution through efficient governance. We encourage and favor management teams that have a proactive mentality and sense of urgency.
Investment Criteria
Our investment philosophy is predicated on true long-term ownership, independent governance, and proven ability to achieve results.
We aim to invest in impactful and profitable businesses that meet the following criteria:
- Proven Business model.
- Early growth stage startups or SME’s with annual turnover of at least $500k.
- Experienced and committed management team.
- Unimposing competitors.
- Profitability or ability to quickly reach profitability after funding.
- Strong company governance and ESG standards or the ability to implement such standards post funding.
- Capacity to generate significant free cash flow for reinvestment or shareholder dividend returns.