Sustainable Economic Transformation
Sovereignty Capital is an exclusive African Private Equity Fund Manager, Venture Capital Investor and Corporate Finance Advisory, with a comprehensive range of services tailored to meet, and often exceed, the expectations of our elite local and international client base.
Long-term Value Investments
As a control and growth investor, Sovereignty Capital creates superior returns by transforming strategy, operations and finances of portfolio businesses into best-of-class in their industry. The company has established a sound reputation within sectors such as mining, resources and the automotive industry, servicing an array of blue-chip South African and international corporations.
Venture Capital and Pioneership
Sovereignty Capital identifies highly disruptive businesses with a minimum viable product, some customer traction and potential for rapid growth. Our investment approach is to provide incremental funding as the business grows and reaches certain milestones. We make long-term investments and offer strategic advice and insights, access to networks and operational support where needed.
We build world class businesses by partnering with strong management teams and co-investors with proven experience in driving growth. Our partnership model is the crucial to providing superior returns. We specialise in the acquisitions of Medium-to-large companies in South Africa, and selectively in sub-Saharan Africa, predominantly in the resources, automotive and technology sector.
Corporate Advisory Services
Sovereignty’s Advisory unit enjoys independence from the local Banking sector, which opens up a much wider set of deal-making and partnership opportunities. Services offered include transactional support and advice with mergers and acquisitions, fund raising, corporate actions and strategic or operational planning. Our clear understanding of the current macro-economic conditions in the country allows us to structure South Africa-specific deals, with a specialisation in advising on BEE transactions.
Venture Capital and Entrepreneurship
Core to our pioneering spirit is an entrepreneurial spirit that allows us to swiftly identify and take advantage of opportunities. As part of our extensive network, we have access to privately structured financing for disruptive businesses. We provide seed and growth-stage funding in between R1mil and R5mil, taking a meaninful minority stake. We prefer simple investment structures, invest directly into a company and take a long-term investment horizon.
Previous Clients and Transactions
Overview of Completed Transactions
|DEAL / COMPANY||DETAILS|
|Blounts Transport||Involved in managing the turnaround of a predominantly coal transport company, initial turnover ZAR4m a year. Within 1 year turnover ZAR4m, a month cash-flow positive and over ZAR20m raised.|
|ICH||Simon Koch with a partner raised the equivalent of USD70m to purchase, list and unbundle 3 listed companies ICH, Issues and Investments by way of S311. The debt was repaid within 2 years.|
|Connection Group||Sovereignty funded initial capital for 2nd and 3rd Software Connection stores for the managers that resulted in listing a group.|
|Kelvinator||Sovereignty purchased Kelvinator for ZAR1 from Barloworld, 3 days from final closure (after losses of ZAR70m in previous year.) Sovereignty was responsible for restructuring, refinancing and creating an employee owned equity structure.|
|Telkom||Advised on a secondary BEE transaction.|
|Unihold||Facilitated Unihold’s purchase by ABSA.|
|Barloworld Scientific||Sovereignty advised Nova Capital UK in its successful purchase of Barloworld Scientific for USD85m (ZAR1bn). Advancing on unsuccessful bid for Foodcorp ZAR3bn and currently client one of 2 parties bidding for assets of SA-listed entity offshore (value +/- ZAR1.2bn).|
|First Uranium Rand Notes||Sovereignty took over as adviser from RMB in order to prevent Simmer & Jack from having to carry out a rights issue. Other options, including selling assets, were considered. Ultimately, Sovereignty was instrumental in raising ZAR60m at short notice (by sale & repurchase agreement) in order to buy a portion of the First Uranium loan notes from Simmer & Jack.|
|Simmer and Jack / Village Deal||As financial advisor to Simmer and Jack, were the deal originators of this transaction of about ZAR1.8bn and were advisors to the Simmer and Jack deal completed in June 2011.|
|Vulisango / Continental||In 2013, Sovereignty Capital arranged the sale of Vulisango’s 26% interest in Continental Tyres South Africa. Within this transaction Sovereignty Capital restructured and purchased 100% of Kwikfit South Africa. Total value of the transaction was at ZAR800m.|
|Kwikfit / Uber South Africa||Originated, funded and successfully launched Kwikfit Wheels in 2015, a financial service provider that introduces a vehicle ownership program in partnership with Uber.|
|Various other confidential transactions||These include an array of Secondary BEE transactions, such as advising Vulisango in their recent dismissal and replacement of the Simmer & Jack Ltd and First Uranium board members including CEO and Chairman.|
Cape Town Office
C: +27 82 812 6415
Sovereignty Capital Proprietary Limited is a licensed authorised financial services provider under the jurisdiction of the Financial Services Board of South Africa in terms of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002). Sovereignty Capital holds an FSP Category I & Category II license (No. 42463).
Furthermore, Sovereignty Capital holds a BEE Level 3 Certificate to promote transactions that further hollistic and inclusive economic growth.