By investing proprietary capital, we have a strong focus on value creation for our partners – and ourselves. We pride ourselves on our proven ability to add measurable value to the businesses we invest in.
Principal Partners looks to invest in businesses which have an established profitable track record. As such we invest in businesses with a strong market position, which are highly scalable in sustainable industries, and have an annual profit after tax of R5 million or greater. We also believe that a strong top-tier management team is essential. Ultimately, we invest in people! We wouldn’t entertain any transaction if we didn’t wholeheartedly believe in the management teams ability to deliver the business strategy.
We don’t consider investments in mining, agriculture, tobacco, alcohol, gambling and arms and ammunition. We do seldomly, however, consider small venture capital type investments in start-ups and early stage companies. Whilst we do consider investments in most countries, our focus remains on African and European opportunities.
In certain instances where an opportunity is too large for us to assume solely, we leverage off our extensive base of affiliates to raise co-investment funding.
Our investment approach is active and we typically assume a significant minority up to majority stakes in the businesses we invest in. We also insist on board representation for all portfolio assets. In doing so, we invest more than just capital. We invest ourselves.