Approach

Investment Strategy:

The Rockwood team focuses on taking substantial equity positions in medium to large sized companies that have experienced management teams. Such companies should preferably have excellent profit histories and / or good growth opportunities as well as being number one or two in their industry.

The Rockwood team forms strong relationships with the management teams of its portfolio companies and works closely with them in determining strategy and implementing value-enhancing initiatives.

Geographical Focus:

Mandate to invest in South Africa, however, our portfolio companies are encouraged to seek commercial and M&A opportunities within sub-Saharan Africa.

Investment Size:

Equity investments of R300 million to R1 billion, with a preferred investment size of R750 million.

Sector Focus:

Generalist industry approach, with a focus on companies that are expected to grow faster than South African Gross Domestic Product (GDP).

Industries Excluded:

Primary agriculture, property, armaments, tobacco and mining.

Stage of Investment:

Typically Management Buy-Out / Leveraged Buy-Out but including expansion, growth and replacement capital.

Deal Sourcing:

The Rockwood team members have wide personal and professional relationships and reputations for executing transactions once committed, which allow them to source transactions.

Transaction Characteristics:

Rockwood seeks controlling or significant minority positions in investee companies, as well as board representation or other means of significant influence on every investment.

BEE Partners:

Together with portfolio management teams, Rockwood invites potential BEE partners to invest alongside them.

Debt Partners:

Together with portfolio management teams, Rockwood invites leveraged finance providers to tender for appropriately structured debt packages.

Portfolio Construction:

Rockwood only invests in well-established businesses with a long track record of success. Target investments are market leaders and led by well-balanced and experienced management teams. The Rockwood portfolio of Fund I investments is well diversified in terms of industries, investment date in the economic cycle, growth assets v cash converters, gearing levels and margins which serves as an additional protection against earnings volatility.

Environmental, Social and Governance (ESG):

Rockwood recognises that responsible investing is vital to building sustainable businesses.

Environmental, Social and Governance (ESG) matters are therefore considered during the investment appraisal process and continue to be monitored during the investment holding period.