More than R750 million has recently been invested by leading South African alternative asset manager, Westbrooke, into founder-led and family-owned South African businesses, reflecting growing confidence in the country’s entrepreneurial sector.
These recent SA investments include:
- A partnership with the founder of a leading equipment rental business who wanted to realise partial liquidity while retaining operational involvement and securing the capital needed to support the company’s continued organic and acquisitive growth;
- An investment in a family-owned leading distributor and retailer, allowing them the flexibility to pursue further organic and acquisitive growth opportunities while maintaining management control and significant ownership; and
- A partnership with founder owned real estate investment group to buy and build a portfolio of mid-market industrial real estate in the Western Cape.
According to Brent Blankfield, investment executive at Westbrooke, the common thread across these investments is the quality of the businesses and their leadership. “Our investment reflects our confidence in South African businesses. We continue to support founder-led and family-owned businesses with experienced management teams, strong positions in their markets and clear organic and acquisitive growth plans. We are actively seeking investments in this sector of the market.”
Blankfield adds that Westbrooke’s heritage as owner operators shapes the way the firm approaches founder-led and entrepreneurially run businesses. “Having owned and operated businesses ourselves for more than twenty years, we’ve learnt that every business has its own priorities. Whether they’re looking to expand, thinking about succession or focused on making an acquisition we can support them in multiple ways. Our role isn’t to fit every business into the same investment model but to understand what the shareholders and management are trying to achieve and structure a solution that works.”
South African businesses have spent the past several years navigating economic uncertainty and infrastructure constraints. Many have emerged with stronger, more resilient operating models. Due to the increasing political stability and improving growth prospects, founders and family owners are increasingly confident that the time is right to pursue delayed growth and acquisitions and succession planning solutions.
This is driving demand for investment partners who structure bespoke transactions that supports growth whilst preserving founder control or involvement and management continuity.