Investment Criteria
In order to qualify for possible investment by SAED, businesses should broadly demonstrate a combination of some or all of the following characteristics:
Developmental
- Desirable product / service in growth market
- Proven and reliable management team who have a desire to take their businesses to the next level
- Investments will ideally unlock organic / acquisitive expansion opportunities
- Preference to investment in black owned / controlled entities where BEE participation can be enhanced
- Investments should lead to sustainable job creation and skills development
Financial
- Equity stakes of between 25% and 100% in businesses with an established business model and proven track record of profitability / cash flow generation (not venture capital nor greenfield investments)
- Investments will typically require funding of between R10 million and R30 million per investment
- Enterprises must have barriers to entry, excellent prospects for growth and a sustainable profit outlook
- Limited debt will be used in the underlying investments to give them the best opportunity for success and growth