Collins Private Equity is a private equity firm that specialises in development capital and buyout transactions. Furthermore, the firm does not invest in seed or start-up businesses. Instead, it targets established companies with growth potential. In addition, it typically invests up to R25 million per transaction. Moreover, it usually takes minority stakes between 20% and 45%, although it can also acquire controlling interests where appropriate.
Collins Private Equity is based in Durban, South Africa, and it also operates from an additional office in Umhlanga, South Africa. Furthermore, the firm actively participates in transactions across South Africa, rather than limiting its activities to one region.
Collins Private Equity (CPE)
Collins Private Equity (CPE) focuses on investing in unlisted businesses across South Africa. In particular, it funds Management Buyouts (MBOs), Leveraged Buyouts (LBOs), and expansion capital for established growing companies. In addition, it occasionally provides limited seed capital for early-stage opportunities.
Moreover, CPE builds long-term partnerships with management teams. It bases these relationships on integrity, trust, and shared value creation. Furthermore, it works closely with investee companies to support operational growth and strategic development.
In partnership with the Collins Property Group, CPE concentrates on small to medium non-property equity investments. To date, the firm has invested over R200 million across ten transactions in various industries. Additionally, it has completed eight portfolio acquisitions within its investee companies.
Investments made by Collins Private Equity
1. Autovest
CPE established Autovest Limited in 2007 as a holding company for niche automotive businesses. Furthermore, it acquired and consolidated multiple automotive-related companies under the group. In addition, it introduced new management to support operational growth.
Moreover, CPE facilitated investments and strategic transactions involving multiple partners, including Imbewu Capital Partners. Consequently, Autovest expanded into new product markets, including vehicle protection. Finally, KAP acquired Autovest in 2016 for R560 million after strong portfolio growth.
2. Afrika Biopharma / Biotech
In 2004 CPE provided early stage funding for Afrika Biopharma Investments (ABPI) – a black owned and managed pharmaceutical investment company. ABPI successfully raised funds from the Industrial Development Council (IDC) to purchase Biotech Laboratories, a generic pharmaceutical company. The shareholders of ABPI became actively involved in running Biotech and the business has grown exponentially.
In March 2007 Biotech concluded a transaction with JB Chemicals (JBC) – a pharmaceutical company listed in Mumbai – in terms of which JBC invested US$ 5.1 million for a 49% stake in Biotech. The funds raised from JBC were used to settle the IDC debt, take out minorities in Biotech and provide working capital. Following the successful execution of its growth strategy the remaining 51% of Biotech was sold to JBC in December 2015.
3. Maxe Stainless Steel
In March 2005 CPE facilitated the LBO of stainless steel vehicle accessory manufacturer Maxe. CPE acquired a controlling stake in the business and was involved in the day to day management of the company. Maxe grew significantly since the LBO and moved into new premises in June 2007 in order to accommodate its growth. In August 2007 Maxe was sold to Autovest in a share for share swap.
4. Glenrand MIB
In February 2009 CPE partnered with Trustee Board Investments to form a consortium that purchased RMB’s stake in the listed risk consultancy Glenrand MIB. The consortium’s collective shareholding in Glenrand MIB was approximately 21%, making it the biggest single shareholder of Glenrand MIB. In April 2011 the consortium sold its shares in Glenrand to AON in terms of a scheme of arrangement whereby AON purchased all the shares of Glenrand.
5. e-Mali
In March 2011 CPE purchased a small minority shareholding in e-Mali, a start-up business that has launched a low cost banking solution in Zimbabwe. Following the difficulties experienced by the Zimbabwean banking system e-Mali was sold to IceCash in 2016.
6. Rodel
The shareholders of CPE provided seed capital funding for Rodel Financial Services, a company that funds public liability claims and provides property bridging finance. CPE’s shareholding was sold to its partners in Rodel in 2014.
7. Beyond Wireless
The principles of CPE provided seed capital funding for Beyond Wireless, a solutions provider in machine to machine communications using GSM technology. Beyond has attracted second round funding from new investors and CPE has exited the investment.
At DTC we understand the complexities of the various funding agencies and the unique application criteria for each. We have assisted thousands of entrepreneurs through the application process to access funding for businesses, and we can assist you with the same.
Contact us for more information on funding through Collins Private Equity.
