Circle seeks to benefit from the positive combination of business factors that South Africa has to offer, which include a skilled work force, effective and expanding infrastructure and increasing access to foreign markets. Circle has and will continue to identify potential acquisition candidates through its industry contacts and the management of its portfolio companies.
Circle sees the financial services arena as an entry point into all of South Africa’s industries with a combination of a black owned platform and skilled leadership of divisional level. Circle is positioned to add value through financial services in the broader economy.
As a general rule Circle will only buy into companies that are highly cash generative and that boast a first rate management team. Circle hopes to execute its model through the clustering of market activity in the following service vectors.
Investment Methodology
Expansion Capital
Expansion capital for SMEs with significant growth prospects.
Such investments will provide critical funding to established
businesses that are positioned to take advantage of organic
growth and acquisition opportunities including platform build-up
strategies.
Replacement Capital
Replacement capital to finance
the full or partial exit of significant equity investors. Such
investments will be made either in support
of incumbent management’s business plan or in companies
with under-performing or under-utilized assets where an enhanced
management team and a new investor group can have a positive
impact.
Joint Ventures
Joint ventures with multinational
companies, local mainstream SA business and those from the emerging
Black Economic Empowerment
("BEE") business sector.
Co-Investment
Co-invest with Black Economic Empowerment Investment Companies
to take in SMEs positioned to take advantage of the vast government
procurement space in our chosen industry focus.