We are one of South Africa’s most established alternatives fund managers investing in mezzanine debt, preference shares, and quasi equity.
We have over 30 years of deal origination, execution and exit experience. Since 2007, we have sourced, structured, invested, managed and exited transactions across multiple sectors and capital structures, for Old Mutual on a principal basis, deploying in excess of ZAR 7 B across 28 transactions.
As a new capability within Old Mutual Alternative Investments (OMAI), our aim is to continue delivering superior investment returns for investors by building a strong, well-diversified portfolio of investments, supporting medium-to-large companies operating on the African continent, with a specific focus on South Africa.
*As at 31 December 2020
A hybrid equity investment provides investors with a flexible alternative to the traditional fixed income and private equity investment models giving investors a well-balanced attractive risk-adjusted return. Having managed this strategy on a principal basis for many years for Old Mutual, we are now offering this capability, for the first time, to other institutional investors.
Our aim is to continue strengthening the existing set of funding relationships established over many years, to source new pipeline opportunities. These includes our existing portfolio of clients, who require acquisition finance, additional investments into portfolio companies, refinancing of existing facilities, and exiting of existing positions.
We will also continue building existing value chains of institutional and investment banking relationships, which has historically provided a healthy source of deal flow. Finally, we will leverage the Old Mutual brand and work alongside existing OMAI funds to source synergistic opportunities, which will also provide a reliable additional source of deal flow for the Hybrid Equity Fund.
We invest in established companies that are looking to grow, recapitalise or acquire new businesses and we provide funding to high quality management teams for management and leveraged buyouts.We make quality investments into companies with:
- Established track records
- Proven cash flows, with strong prospects
- Experienced, proven, quality management teams
- Established market presence, and excellent competitive positioning, in solid industries
Building on OMAI’s existing mandate, providing financing for established and well-governed BEE-related transactions, is a key focus area for us as we seek to demonstrate our commitment to empower and transform South Africa. As a team, we are passionate about using investor capital to generate attractive risk-adjusted returns, and to make a lasting, positive impact in South Africa.
We have a consistent and verifiable track record over different market cycles, sectors, and industries. Supported by our dedicated support services and operations, our team has provided structured and bespoke solutions to borrowers since 2007. Our disciplined investment approach means returns achieved have consistently outperformed benchmarks, and to date, we have successfully originated, executed and exited more transactions than our competitors.
Transformation across all aspects of the society we live is an imperative for both OMAI as a business and this team. The Hybrid Equity Fund is proud to be 100% black-managed and the investment committee will also be majority black.