We believe that Sandown Capital’s PE fund will be successful in Building Better Quality Businesses.
Due to the alignment of interests between our skill sets and management of the portfolio companies. In providing growth capital for companies, we believe PE investments will generate a multiplier effect. Not only yielding substantial returns for investors over the medium-term, but also creating socio-economic benefits for African consumers.
Moreover, we believe that Private Equity has an especially critical role to play in driving African economic growth, especially with respect to creating real value within small to medium sized businesses. Such corporates have often been neglected by major financial institutions – an unfortunate factor which appears to have been amplified by the Covid-19 pandemic. Sandown’s analysis of the current investment opportunity set has identified many high potential return candidates.
Our investment process is sector-agnostic and deliberately excludes corporates that, in the judgement of its Investment Committee, may have been linked directly or indirectly to inadequate levels of corporate governance.
We use a proprietary quantitative and qualitative impact investment screening to identify the best opportunities – rejecting businesses that fail to meet minimum standards and working collaboratively with management to strive for greater transparency, simplicity, value-creation, social responsibility and compliance.
Our overall investment process is rooted in a desire to give back to society – to help improve the quality of life for all stakeholders with a focus on the lower-middle classes. Accordingly, a proportion of corporate profits above a minimum threshold will be dispersed to charitable causes, especially education.
Systematic Screening of Publicly Listed Small-Mid Cap Corporates
Sandown’s investment process systematically screens publicly listed small-mid cap corporates as well as non-public opportunities that offer multiple paths for value-creation. Such paths may include management change, organisational restructuring, refinancing, fiscal optimisation and mergers / acquisitions to drive synergies.
Additional factors we take into account during our screening process includes an assessment of each of the following attributes:
- Management team skills, competence, ethics and track record
- Disruptive nature & quality of the overall business strategy & proposition
- Impact Investing strategy
- Analysis of the market and competitive position
- Assessment of the historic, current and future financial performance
- Robustness of overall strategy key financial projections
- Risk and compliance management
- Embedded & intrinsic value
Corporate Governance Policies.
Sandown’s PE fund will adhere to best-practice Corporate Governance policies as evidenced by regular Board meetings, clearly defined responsibilities and oversight of business and financial risk. We recognise that regulatory scrutiny and the demand for greater transparency continues to extend beyond traditional performance calculations including non-financial performance metrics.
We also believe that leveraging outside talent to bolster management teams to help drive growth is important. Appointing independent directors onto the Boards of our portfolio companies provide additional input in terms of driving value creation and the provision of strategic guidance.
“If you do not know how to care for money, money will stay away from you.”
Robert T. Kiyosaki