Sphere Private Equity is a high performing investment holding company driven to create value for funders, shareholders and business partners. With a solid track record shaped over a decade, they actively seek out investment partnerships with high quality privately owned businesses across a range of strategic sectors.
Majority black controlled and managed, boasting 59% black ownership, including 33% women ownership, Sphere has the necessary credentials to advance the broad based Black Economic Empowerment goals of South African businesses.
Sphere Private Equity
Sphere Private Equity is the private equity arm of Sphere Holdings Pty Ltd. specializing in management and leveraged buyouts, acquisition financing, expansion, replacement, growth capital, and middle market investments. It does not invest in early stage and in sectors including primary agriculture, mining, and property.
The cornerstone of the business is to forge strong long-term alliances with founders, management teams and co-investors to drive strategic and operational excellence, and ultimately to create tangible value for all their stakeholders. Sphere works hand in hand with their portfolio companies to assist them in reaching the next stage of their growth path.
The company has a far reaching business network which is leveraged for the benefit of their portfolio companies and possess strong relationships with industry influencers across diverse sectors in South Africa and into Africa. As a team, they have also been fortunate enough to have worked on multi-disciplinary projects to provide both counsel and advice to government stakeholders on diverse projects ranging from policy to mergers and acquisitions.
Ownership and Structure
Sphere’s management team holds a 53% share in the organisation. In addition, leading financial institutions such as Rand Merchant Bank, Sanlam Private Equity, and Eskom Pension & Provident Fund hold a combined 40% share. Furthermore, charitable organisations hold approximately 11% of the shares.
Investment Approach
Sphere prefers to take significant minority or majority stakes in its portfolio companies. In most cases, it also secures a board seat to support governance and strategic direction. Notably, Sphere Private Equity was founded in 2003 and operates from Sandton, South Africa.
Investment Focus
Sphere focuses on expanding opportunities for established businesses while delivering strong returns to shareholders. Accordingly, the firm targets large and medium-sized companies across sectors such as services, banking, financial services, industrials, and technology.
Typically, Sphere invests between ZAR5 million and ZAR50 million in equity or equity-related instruments. At the same time, it targets companies with enterprise values between ZAR50 million and ZAR200 million. Additionally, these businesses should generate operating profits of at least ZAR20 million.
Investment Criteria
Sphere invests directly in medium to large, well-established businesses. Specifically, it looks for companies that offer a strong and sustainable competitive advantage. Moreover, the business must demonstrate real growth and a proven track record of performance.
In addition, Sphere prioritises companies with strong, aligned management teams and clear growth prospects within South Africa. Furthermore, it values opportunities for expansion into the broader African market. Finally, the firm seeks partners who are willing to build long-term relationships based on mutual respect and a shared vision.
Contact DTC
At DTC, we understand the complexities of funding agencies and their application requirements. Consequently, we have supported thousands of entrepreneurs in accessing business funding. Likewise, we can assist you in preparing and submitting a successful application.
Contact us for more information on funding through Sphere Private Equity.
