Strategy

 

We create value by partnering with exceptional management teams, by transforming strategy and operations, and through optimizing capital structure.

 

Sustainable portfolio growth

 

We invest selectively in quality unlisted businesses with sustainable competitive advantages and high growth potential, taking into account the following:

  • Sectors that are fundamentally strong and with excellent growth prospects
  • Identify the market leaders and / or natural consolidators
  • Opportunities to scale existing operations organically
  • “Buy and build” where appropriate – leverage synergies, accelerate growth and defend market position
  • Contribution to achieving a balanced portfolio, taking into account business stage of life, sector, geography and earnings
  • Ability to maximise shareholder value through sustainable NAV growth

 

How we deliver this strategy

 

Although we are flexible in our approach we apply certain consistent criteria in our investment process:

  • Controlling or significant equity interests and Board representation
  • Exceptional management teams that are aligned with shareholders and empowered to deliver
  • Platform approach to accelerate growth and enhance value creation through realisation of synergies
  • Opportunities to enhance returns by adding value in areas such as capital structure, corporate governance, investment in people and assets
  • Scope to leverage our extensive networks for deal flow

Investment criteria

 

Infinitus focuses on high growth companies in the South African mid-market. We invest across three pillars: Consumer, Industrial and Financial Services.

 

Our investment criteria include the following:

  • South African headquartered companies – we seek offshore exposure through the subsidiaries of our South African businesses
  • Company enterprise value of between R100 – 500m
  • Infinitus equity investments of between R50 – 150m
  • Significant influence at a minimum with a control stake preferable
  • Strong, experienced management teams with a relevant track record
  • Compelling growth prospects and / or profit history
  • Demonstration of market or niche leadership

Value add

Infinitus has a value-add philosophy, which entails active participation in our portfolio companies. However, the degree of involvement varies and is dependent on the size and maturity of the company, the skills and experience of the management team, and the performance or outlook of the company at a particular point in time.

We create value by partnering with management. The Infinitus team forms strong relationships with the management teams of its portfolio companies, and works closely with them in determining strategy and implementing value-enhancing initiatives in order to help them grow and realise their ambitions. We bring our experience to the relationship, which spans a broad range of transaction types, companies and sectors over the years. We use this experience to identify areas of improvement for each business, focusing on factors such as acceleration of sales growth, margin improvements, increased operational efficiencies, capital discipline, corporate governance structures, acquisitions and divestments, and implementation of strategic plans. This is an ongoing and evolving process that starts in the due diligence phase, continues right through the investment management phase, and ends on exit.

Evolution Timeline