Sakhumnotho Group Holdings (“SGH”) is a leading global investment holding group with a 20 year track record of successful investments. Sakhumnotho has extensive transaction experience having concluded and exited investments in excess of U$800m in total value in various sectors including mining, oil and gas, renewable energy, property and other sectors. These transactions have typically been concluded in partnership with other BEE investors. We invest in a broad range of economic sectors. Our current portfolio include interests in mining, mining services, oil and gas, renewable energy, property as well telecoms, media and technology (“TMT”). We have a robust strategy to aggressively grow our total asset base and our intrinsic net asset value (“INAV”) over the next 5 years on the African continent and globally.
- We adhere to Environmental, Social and Governance (“ESG”) principles in our investment decisions.
- We invest in both listed and unlisted investments, although we prioritize unlisted investments for its scarcity value.
- We seek equity related returns which is informed by the transaction but must exceed our internal weighted average cost of capital.
- Our investments are done on the basis of limited recourse to the SGH balance sheet meaning that each transaction is ring-fenced.
- We acquire interests in businesses at attractive valuations that are market related. We typically avoid auction processes for assets.
- We invest in partnership with like minded investors in order to optimally structure transactions and participate in larger transactions.
- Our geographic investment focus covers mainly Sub-Saharan Africa however we would assess opportunities in the rest of the globe on a case-by-case basis.
- Sector focus include mining, mining services, oil and gas, renewable energy, property, TMT, financial services, agriculture, healthcare, manufacturing, services and education.
- We will however consider passive BEE minority stakes in transactions that are facilitated by vendors and where we need to invest a limited equity cheque in order to participate.
- We are a permanent capital investor with a long-term investment horizon without undue exit requirements from an investment. We typically hold investments for 5 years and longer.
- We ideally target significant minority stakes (larger that 15%) that allow us to contribute to driving growth and transformation of our investee companies. We would typically seek representation on the Board of the Investee company.
Target Investee Company Criteria
- Businesses with highly rated management teams with a track record of delivery.
- Business that are socially responsible and adhere to the highest standards of ethics and governance.
- We invest in businesses that are cash generative and can contribute returns in the form of dividends to the Group.
- Alignment in values between Sakhumnotho and the prospective investee company shareholders and management.
- We invest in businesses that are market leading with strong business models and with clear competitive advantages.
- Businesses that have scale or are scalable and can become pillar assets for Sakhumnotho and contribute meaningfully to growing our INAV.
- We typically invest in medium to large businesses with annual Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”) of R25 million and above.
- We invest mainly in businesses that have a proven track record of profitability and revenue growth historically as well as above average expected growth rates going forward.