How we create value

We are active, hands-on investors. Our decisions have a transformational impact on companies, and we believe that a value creation approach leads to smarter, more responsible investing.

Our approach is about more than avoiding risks:
It is about discovering opportunity and being better investors. It encourages us to think outside the box; and it allows us to find and unlock value that others do not see.

We implement our value creation approach through different layers of collaboration including:



 

Reach

  • we operate a powerful network of relationships across Africa and beyond - to access capital, partners, service providers, talent, government, business leaders and other stakeholders

Expertise

  • we leverage our in-house talent to build competencies and capabilities whilst attracting and maintaining key talent in our investee management teams
 

Market intelligence

  • mid-cap companies are preferred for investment
  • we enhance our deep understanding of our investees by performing benchmarking assessments of their operations and assisting in formulating business development and market strategies
  • our market research services provide relevant and intelligent market analysis
  

Impact

  • we aim to acheive a positive social impact, while generating a profit
  • we pursue a “profit with purpose” strategy, while building value for tomorrow

Our investment philosophy

Helping a new business to realise its full potential requires much more than capital. We provide strategic support, introduce industry expertise, strengthen corporate governance and apply operational best practice.

The Coronation Capital investment process is centred on:

Patience:

We are patient and have a long-term investment horizon.

Focus:

We work with management teams to implement strategic and operating initiatives that build long-term value.

Flexibility:

We work as a team to support the management of our portfolio companies in a variety of ways.

Our investment strategy

Africa is approaching an inflection point where digital technology, favourable demographic trends and strengthening economies are about to drive the transformation of the whole continent.

With a world-class team, established local networks and specialist knowledge, Coronation Capital is poised to take this opportunity, working alongside entrepreneurs and with our partners.

Coronation Capital sources deals with the following characteristics:

1  control transactions alongside proven management teams or operational partners - driven by stategic imperatives or succession planning and underpinned by growth   2  strategic minority interests to drive organicor inorganic growth, and/or to drive operational improvements   3  pre-IPO investments with sponsors who aspire to list regionally, in conjunction with credible anchor investors
 

Deal parameters

  • core investment philosophy that competitively-advantaged companies can generate superior returns for shareholders over longer periods of time
  • mid-cap companies are preferred for investment
  • the optimum investment holding period is seen as 7-10 years - with exit mechanisms defined at the outset to realise the investment
  • comprehensive investment plans detail the key strategic imperatives within the first 24 months, including growth drivers and expansion, performance and efficiencies, acquisitions and relevant factors
  

Our sector focus

We focus on rapidly changing industries such as financial technology, digital technology and telecoms. We also invest in real estate and the oil and gas industry, where these sectors meet our stringent criteria.

Investment priority: financial services

Services in the financial sector, digital technology, telecoms and outsourcing have become attractive as changing consumer behaviours drive demand for new services, financial products and amenities

  • technology and infrastructural improvements are lowering costs, reducing barriers and allowing access to a wider population (and a widening consumer base)
  • although the prospects for technology investment are compelling, the key is to limit exposure to risk whilst supporting positive change sector performance is highly correlated to economic growth
  • regulated segments such as financial services and telecoms can yield consolidation, acquisition or privatisation opportunities - it acts as a facilitator of business and commerce and as a catalyst for further development
  Co-investment opportunity: real estate / oil and gas
  • collaboration and co-investing capital sums alongside other co-investors
  • structuring investments - possibly as mezzanine instruments - to ensure returns and exits within the medium term risk is limited by investing in projects that have proven reserves