 We have concluded over 150 transactions to date
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Commitment over the long term
RMB Corvest is currently invested in over 50 companies and has concluded over 150 transactions to date. Our partnering with the management of mid-sized companies or with BEE investors has resulted in numerous success stories. We remain invested in many of these companies, providing ongoing funding and strategic guidance for further growth.
Management buyout and black economic empowerment
In 2004, we assisted with the management buyout (MBO) of a company from an international conglomerate based in New York. We simultaneously warehoused and distributed a shareholding in the company to an empowerment partner and, in mid-2007, we sold our shareholding to the management partners. During the three year period, the company successfully repaid all its debt and turnover rose substantially.
Management buy-in and provision of acquisition finance
In 2006, we backed two young entrepreneurs to buy a blind manufacturing company from the retiring founders. In a subsequent transaction, we funded the company’s acquisition of the manufacturing operations of its biggest competitor, helping to position the company as the biggest of its kind in South Africa.
Long-term partnership and black economic empowerment
In 1990, we funded the MBO of a company which provides cash-in-transit, guarding and cleaning services. We have since structured and financed various acquisitions, helping the company to grow significantly. To assist with management incentivisation and to provide for the individual black economic empowerment needs of the three divisions in the company, we unbundled the company into three services companies, each with its own management team and BEE partner.
Public to private
In 2003, we lead-managed a leveraged buyout of a public company with two other investor groups. The knowledge we gained through our delisting experience assists shareholders and management in structuring an optimal solution in a complex environment.
Management buyout, provision of acquisition finance and black economic empowerment
In 2006, we assisted management in gaining control of a contract services business incorporating cleaning, plant rental, security and marine services. We also introduced and co-funded a BEE partner, and assisted in merging the company with two other services related businesses. Through our support, the company has succeeded in expanding offshore; in late 2007, we assisted and co-funded the company to enable its expansion into the UK, while growth opportunities in Europe are now also being investigated.
Second stage BEE deals
RMB Corvest has recently funded 4 second-stage BEE deals, enabling the first BEE shareholder to exit and realise cash from its investment. In these instances, RMB Corvest also introduced the BEE partner to the transaction.
Large syndicated deals
In 2009 we participated in a large pan-African transaction with two global private equity companies. The transaction included 26% black empowerment and an equity stake set aside for the management team, a portion of which is linked to the future performance of the business. In this example, RMB Corvest fills the role of investment partner with "hands-on" knowledge of the local operating environment.
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