Although Equicap's primary funding source flows from its relationship with RMB Corvest, it also has access to external capital via its wide circle of syndicate investors. Funds are principally provided in the form of interest bearing loans supported by various forms of equity and equity loan capital.
Equicap seeks to invest in established, well managed businesses offering a demonstrable track record of performance with our defined market generally being businesses which generate in excess of R2m net profit before tax per annum.
We will however consider investing in smaller businesses should there be special and specific circumstances. Our main investment criteria are:
- A competent management team with a successful track record in the business or industry.
- A well defined market position with preferably market share dominance in its particular niche.
- A good track record of performance with a demonstrable ability to generate positive free cash flow.
- Good growth prospects for the company in terms of the industry it operates in and for the company itself.
We do not consider investing in newly formed businesses or turnarounds.
Why deal with Equicap
We are relationship private equity investors.
The management team of Equicap is stable with all directors being shareholders in the business. A firm policy of transaction initiation, structuring and execution by the same team is adhered to. Clients are therefore assured of continuity in their dealings and will always have access at senior executive level.
Equicap is a focused company specialising in the investment banking and private equity market. As such, it has systems in place to ensure rapid decision making and is committed to providing an in-principle decision within 7 days of receiving the necessary information. Generally, Equicap will be able to provide board approval for a transaction within 30 days of commencing a due diligence investigation of a company.
The Partnership Philosophy
Equicap views each investment it makes as entering into a partnership and is committed to a medium to long term relationship. Equicap introduces finance, structuring skills, strategic input to the transaction and will act as a sounding board during the period of the partnership as well as assisting with the strategic planning process. Equicap expects its partners to provide managerial skills, finance (having regard to the limitations of financial resources of its partners) and dedication.
In addition, each client inevitably requires or makes use of a commercial banking network, insurance and insurance broking services, specialist financing, etc. Equicap, again through its RMB Corvest and other affiliations, is well positioned to advise and assist in this regard.