Senatla Capital is an established South African private equity investment manager. It manages on balance sheet investments as well, that do not fall within its private equity funds’ mandates.
The primary investment strategies pursued in its funds are Growth Capital and Mezzanine Debt, with Black Economic Empowerment (BEE) Secondaries previously invested in. The firm also invests in Real Estate.
Senatla Capital has fully realised its first private equity fund, Senatla Capital Empowerment Fund I (SCEF I). Over an investment period exceeding 5 years, SCEF I has generated a gross IRR of 33% and a 22% IRR for their investors, free from all charges or deductions of all expenses and fees. This performance outstandingly exceeds that achieved by the Johannesburg Stock Exchange ALSI and SWIX indices over the same time period.
Senatla Capital Empowerment Fund II, its successor fund, with a vintage of 2013, has been fully invested. Senatla Capital has achieved a First Close in Senatla Capital Empowerment Fund III and is raising additional capital commitments in Second Close. Senatla Capital’s current Assets Under Management (“AUM”) exceed R 600 million.
Senatla Capital, being a private equity firm specialising in Black Economic Empowerment (BEE), growth capital, mezzanine debt, property, and late stage investments, does not invest in early stage businesses and startups. Within BEE and growth capital investments, it focuses on expansion and replacement capital type opportunities.
The firm seeks to invest directly in private and publicly traded companies, providing expansion, replacement, or growth capital. It also makes investments in buyouts in existing investors in Black Economic Empowerment (BEE) transactions where the underlying exposure is a JSE listed company, an Over the Counter market (OTC) traded company or a large private company.
Within property investments, it focuses on real estate, properties in the office, retail, industrial, and residential space. The firm seeks to invest in South African companies and prefers to invest between R10 million and R25 million, going up to R50 million. The firm seeks to hold its BEE and growth capital investments for four to six years and real estate investments for five to seven years. The firm makes both minimum and maximum stake investments taking between 20% and 100%.
The firm is a responsible corporate citizen and endeavours to consistently adhere to all regulatory requirements in their fields of activity. It strongly espouses the principles and goals embodied in the Broad-Based BEE Act No.53 of 2003 and BEE Act 46 of 2013.
Senatla’s primary duty of care is to responsibly and profitably manage the funds under their management. The firm’s second duty of care is to their investee companies, clients, counter-parties and business partners.
The firm believes strongly that their assets are their people, their capital and their reputation. The firm seeks to hire and retain the highest calibre of people, to multiple the firm’s capital and assets under management through high investment performance and to protect and promote their reputation.
Investments made by Senatla Capital
The primary investment focus in Senatla Capital Empowerment Funds I, II & III (SCEF) is on investments in unlisted companies that offer a value proposition that can be crystallised in the medium term (4 to 6 years). These may typically be expansion or replacement capital type opportunities.
SCEF seeks to invest directly in private companies, providing expansion and replacement capital in the form of equity and debt. SCEF also provides mezzanine debt funding to BEE compliant entrepreneurs requiring equity risk capital to invest in private businesses where they are active investors that propel the fulfilment of the investment thesis for the investment.
Senatla Capital is the general partner and manager of the private equity funds, Senatla Capital Empowerment Funds I, II & III (SCEF I, SCEF II and SCEF III), which are en commandite partnerships.
As at October 2017, the firm had over R 600 million in Assets Under Management (AUM) and had returned over R 260 million to its respective investors.
Contact us for more information on funding through Senatla Capital.