Collins Private Equity is a private equity firm specializing in development capital and buyout. The firm does not invest in seed and start-up. It seeks to invest up to R25 million. The firm typically takes minority stakes between 20% and 45% but can also take controlling stakes in the companies.
Collins Private Equity is based in Durban, South Africa with an additional office in Umhlanga, South Africa.
Collins Private Equity (CPE)
Collins Private Equity (CPE) is based in Durban but is involved in transactions around South Africa. The objective of CPE is to make investments in unlisted businesses by funding Management Buy Outs (MBO’s), Leveraged Buy Outs (LBO’s), expansion capital for established growing businesses and (to a limited extent) seed capital for new businesses.
CPE’s aim is to form partnerships with the management teams of the businesses invested in, built on a basis of integrity and trust.
In partnership with the Collins Property Group, the company focuses on making small to medium sized non-property equity investments. To date the company has invested over R200 million in ten transactions in various industries and has also completed eight portfolio acquisitions within its investee companies.
Investments made by Collins Private Equity
In 2007 CPE was responsible for the establishment and development of Autovest Limited as a holding company of a group of niche automotive industry businesses. Autovest was established in March 2007 and in August 2007 CPE sold its investment in Maxe to Autovest. Following the Maxe transaction Autovest purchased SA Canopy Centre, Rhino Linings and Kilber Products and a new management team was put in place at Autovest.
In May 2008 CPE negotiated and facilitated an investment by Imbewu Capital Partners in Autovest. In 2008 Autovest purchased Startrek Towbars and in June 2010 it purchased Bucco Canopies thereby making it the largest canopy manufacturer in SA. In June 2011 CPE facilitated the sale by Nedbank Capital Private Equity of its 33% stake in Autovest to RMB Corvest.
In March 2012 Autovest purchased Auto Armour and in February 2013 it purchase Motor One, moving the group into the highly profitable vehicle protection market. Following the consolidation of the various acquisitions and the development of a growth strategy, Autovest was sold to KAP in April 2016 for a selling price of R 560 million.
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.
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.
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.