As an on-balance sheet investor, we have a unique advantage to invest over longer periods without exit timing pressure – giving our clients flexibility in terms of investment time horizons.
We invest predominantly in established South African businesses with demonstrated track records. We partner with companies and management boards to provide flexible equity and debt funding packages and turn challenges into innovative opportunities.
With a a track record IRR in excess of 35%, we continue to successfully deliver value for our partners through:
- BEE funding – We provide funding for BEE players to acquire stakes in companies, both as part of RMB-led management buy-outs and as stand-alone deals
- Management buy-outs/ins – We provide the financial and technical capability to enable management teams to buy their businesses from existing shareholders
- Replacement capital — We specialise in replacement capital transactions. Replacing existing shareholders who are looking for liquidity and partnering with the remaining shareholders to facilitate the next chapter of growth.
- Acquisition capital — We provide capital and bring significant M&A experience to the execution of add-on acquisitions
- Growth capital – We provide capital for new plant and equipment, facilitating the development of new products and markets, including access to RMB relationships for expansion into Africa
We partner with management teams of companies that have a sound knowledge of their industry, are passionate about their business and are unwavering in their dedication to creating shareholder and employee value. We also partner like-minded investors in businesses that are aligned strategically, ethically and financially.
Our close association with RMB gives us access to the full suite of Corporate and Investment Banking products.
We apply the following investment criteria when looking to invest in new business:
- Businesses should demonstrate recurring annual earnings before tax of at least R40-m (unless exceptional growth opportunities can be demonstrated)
- We back passionate management teams who demonstrate a deep understanding of their business and industry
- Businesses should be well positioned in their respective markets, and management should be able to show a defendable business model
- Businesses should have demonstrated the ability to generate good cash flows over a long period of time
We do not invest in:
Property, primary mining activities (we will however invest in mining services), primary agriculture (we are excited about agri-tech, high value crops with export potential) and integrated agricultural businesses), venture capital, start-ups or angel funding.
Enabling empowerment partnerships
We take the complexities out of structuring BEE deals. We go beyond building and growing companies as we build communities through structuring innovative and value-added BEE deals. RMB Ventures is fully committed to supporting transformation in South Africa by partnering with BEE entities in almost every transaction. We have excellent relationships with BEE financial investors with established track records, and we will fund credible BEE parties who introduce viable opportunities to RMB Ventures.
We provide funding for BEE players to acquire stakes in companies, both as part of RMB-led management buy-outs and as stand-alone deals. Some of our current and past BEE relationships include: The Tiso Group, Kagiso Trust Investments (now merged as Kagiso-Tiso Holdings), Yard Capital, Sphere Private Equity, Pan-African Private Equity, Pan-African Capital Holdings and Bopa Moruo Capital.