Investment Philosophy

  • Selectivity: We are highly selective in our choice of investments, applying equal attention to meeting investment business criteria and to alignment with vision and values.
  • Value: We have a relentless focus on identifying, building and unlocking value in our investment activities.
  • Long-term: We stand by our partners with well-thought-out strategies through the ups and downs of the business cycle.
  • Sustainability: We believe that what is good for the planet and for people, is good for business.
  • Active: We are an active partner, intent on adding value at strategic and operational levels where the opportunity arises. We draw on both in-house and associated specialist capabilities to do this.
  • Partnership: Ours is a partnership ethos aligned with risk and reward, in a transparent and high-trust relationship with investees and investors.

Focus Sectors

  • Food & agribusiness
  • Household goods manufacturing & distribution
  • Transport & logistics
  • Specialised financial services
  • Media & e-commerce
  • Industrial services
  • Healthcare
  • Private education

OPPORTUNITIES DO NOT ADD UP IN GROWTH SECTORS – THEY MULTIPLY

Investment parameters

  • Nature of transactions: business expansion and consolidation (‘buy-and-build’), corporate restructuring, delisting, MBO’s
  • Preferred equity position: 25% – 75%
  • Prudential limit: normally will not provide more than 75% of the business’s expansion capital required
  • Minimum investment amount: USD 5m with exceptions in unique circumstances
  • Investment view of 7-10 years in the case of fund investments, longer in the case of proprietary investments
  • We are open to syndication and co-investment

Investment criteria

We pay attention to the extent to which potential investee companies meet the following criteria:

  • Business track record – profitability, cash flow, balance sheet
  • Sufficiency of forward cash flows
  • Attractive growth prospects including regional, cross-border scalability
  • Competent management who share in the investment risk
  • Sustainable competitive advantage
  • Export performance / potential
  • Quality of corporate governance
  • Attractive entry values and good exit potential
  • Sustainability in terms of social and environmental impacts

Investment process

  • Initial contact leads to a two-page information requirement
  • After the initial information exchange, a Term Sheet is agreed between the parties
  • Should an in-principle decision be taken to engage, a substantive due diligence process is undertaken by the EXEO investment team. This usually takes 12-16 weeks

Black Economic Empowerment

In the broader sub-Saharan context, Agri-Vie supports the involvement of in-country entrepreneurs and shareholders in the ownership and management of its investee companies.

In the context of South Africa, EXEO Capital is committed to the BEE principles and practices as embodied in the prevailing Codes on Broad Based Black Economic Empowerment. EXEO Capital’s own governance and management structures furthermore reflect active participation by previously disadvantaged individuals.

Against the above background, EXEO Capital’s South African transactions reflect:

  • Equity participation, where possible, by historically disadvantaged persons
  • Participation by historically disadvantaged persons in the management and control of investee companies
  • Market access and other benefits to emerging entrepreneurs
  • A focus on improved participation opportunities for women
  • Work force skills development and training
  • Application of transformative procurement practices
  • Participation in social corporate investment