Investment Philosophy

Our experience in business expansion enables us to provide more than just money to the companies we invest in. We provide the necessary strategic and financial management support to enable them to grow to their full potential.

The key features of our investment philosophy follow.


Investment Criteria

We expect to be investing from the Venture Capital Partners No. 2 Fund in the near future. We are interested in exploring an investment in your business if you can meet most of the following criteria:

  • Your business has established products/services and customers, is currently turning over at least $1 million p.a. and is capable of turning over $20 million p.a. within five years
  • You are generating positive operating cash flows or will be within 18 months
  • You export, or are implementing an export development strategy
  • You can demonstrate a well rounded and capable management team
  • You require growth capital of between $2.0m and $8.0m. We can arrange co-investments of larger amounts through our relationships with other venture capital firms.
  • Your plan includes an exit strategy for investors in the company within five years.

If you wish to discuss a potential investment in your company please CONTACT US. Either contact our office directly or send us a brief business plan.

Investment Relationship

A strong relationship is essential when making an equity investment. In particular we need to share common goals and have mutual respect. We provide support and assistance to the management of the company through our active representation on your Board. We are not looking to run your company. Our Fund seeks a minority shareholding position, typically representing 25% to 40% of the capital structure.

Some of the ways we add value include introductions to our local and international networks, assistance in the selection of key executives, contribution to the company's growth and financial strategy development, assistance in raising further capital, help with mergers and acquisitions and stock market listing.

Investment Term

We are conscious that growth does not happen overnight. Our focus is on the realisation of capital gains in the medium term, rather than immediate dividend yields. Typically, our investment will be realised three to five years after an investment has been made.

Typical Investment Process

In evaluating an investment we will be working closely with the management team for several weeks. Just as we develop an understanding of a potential investee firm, we encourage potential investees to understand how we work by, for example, speaking to our other investees.

This is an overview of the process that we typically follow when making an investment.

Exit Strategy (Liquidity)

We will need to see that we can realise our investment in the medium term. This usually comes about by way of a trade sale of your business, or through publicly listing it on the stock exchange. Your management's commitment to working towards unlocking the wealth of the business for its shareholders is an essential pre-requisite to our investment.