INVESTMENTS
Private Equity
Invest to create growth with impact where it matters
Our investment approach is focused on creating growth with impact in areas that truly matter. We prioritise investments that generate positive outcomes and make a meaningful difference in society.
When we invest, we follow a simple formula: growth + impact = extraordinary outcomes. As a specialist alternatives investment manager, we view investment growth, positive societal impact, and sustainability as an integrated whole.
Our private equity funds provide pension funds and institutional investors access to markets and strategies that generate sustainable impact and offer robust risk-adjusted returns across market cycles. To achieve this, we partner with high-quality, cash-generative businesses that focus on creating products and services that improve people's lives.
Our team of investment, value-add, and ESG specialists are integral in assisting our partner companies in achieving their growth potential. We have a keen eye for identifying and capitalising on both the opportunities and risks that arise from economic, environmental, and social development. By doing so, we unlock sustainable long-term value, driving operational improvements and enhancing overall performance for our partner companies.
01
Deal origination
We invest in sectors we see as drivers of economic growth, job creation and community upliftment. We look for high-quality cash-generative businesses with barriers to entry that are defensive drivers of economic growth, where demand is not cyclical, and multiple exit/liquidity strategies exist. We secure investment opportunities/partnerships (i) aligned with the fund's impact themes and strategic objectives, (iii) who have a proven management team and business model, (iv) represent an attractive entry price, (v) have a clear growth strategy, and (vi) we can upfront define an exit event.
02
Disciplined due diligence
We follow a comprehensive deep-dive approach to due diligence, measuring risk while identifying opportunities for increased sustainable and long-term value. In addition to various independent due diligence processes, our value add team completes a comprehensive operations and ESG due diligence, using our proprietary evaluation processes across People, Product, Process, Position and Planet. The due diligence informs the Value Add + ESG Actions plans.
03
Sustainable value creation
We look at the long-term with our management partners to build thriving businesses that not only produce good returns but also have a larger and longer impact on people's lives. We hold ourselves and our partner companies accountable through rigorous KPI, ESG & impact frameworks and reporting that addresses all material aspects of the business. Our value add specialists assist our portfolio companies across a range of disciplines, including systems development and implementation, operational management, marketing and branding, debt facilitation, strategy etc.
04
Transformation & Impact
The sectors in which we invest are typically “untransformed” for ownership and are yet to fully satisfy the growing demand for quality services in peri-urban and rural areas. We strive to create impact by partnering with businesses ideally placed to capitalise on opportunities to meet the specific needs of much of the African population, transforming wealth, creating jobs and improving communities.
05
Long-term value add
We like to think that the businesses we invest in continue to thrive long after our exit. We go beyond investing capital and tailor a value-add plan specific to each partner company. We use our industry know-how to help them grow, expand, transform, capture opportunities, and withstand market cycles.
We follow a measured approach to investing
Our investment themes
Each fund's overarching objective is to deliver risk-adjusted financial returns and tangible social returns. Our investment framework, built on the principles of the Theory of Change, sets out a fund's long-term impact themes and targets. Fund investment focus and sector selection are structured around one or more of our three core impact themes. Specific impact strategic goals and targets are based on the target country's national goals and where these are aligned with the Impact Reporting and Investment Standards (IRIS+) strategic objectives.
Through our investments, we will look to create new permanent jobs and temporary jobs for mostly previously disadvantaged persons. Job creation within partnership companies is measured using HIPSOs Joint Impact Indicators and in-country frameworks like South Africa's Jobs Fund. Job creation is monitored across demographics and management levels and is typically independently audited annually.
Each fund's impact targets vary depending on the investment sector selection. The potential for community upliftment within partnership companies is determined during a pre-acquisition impact and ESG desktop evaluation. The evaluation is based on IMP's five dimensions of impact (Who, What, How Much, Contribution, Risk) and is measured using IRIS+.
Each fund will set transformation targets typically aligned with each country's in-country objectives, such as South Africa's BBEEE Codes. Being aligned with the 2X CHALLENGE, each fund will look to enable the inclusion & development of women in the workplace. Transformation, diversity and inclusion targets are jointly and upfront agreed upon with the portfolio company, including aspects of black female and black male equity ownership, board, senior management and staff representation and skills development expenditure on previously disadvantaged employees. These targets are monitored and reported quarterly.
Investment specialisation allows us to capitalise on bold opportunities that deliver extraordinary outcomes for our fund investors and portfolio companies.
Tomi Amosun, our Managing Partner sheds light on the foundational pillars and ethos of Summit Africa.
How we invest
Discover how we foster partnerships, our discerning approach to selecting investment sectors, and our unyielding commitment to not only realise financial gains but also ensure tangible social impacts. By integrating specific Sustainable Development Goals (SDGs) and country-specific objectives, we remain resolute in our mission to make meaningful strides in society, all while achieving our business goals. Watch and learn more about our drive, our vision, and our promise to stakeholders.
Portfolio construction
Each private equity fund's investment thesis is crafted based on non-cyclical market opportunities which can deliver one or more of the Summit Africa Impact Themes, within the target geographies. This process typically informs our investment sector selection and exposure limits. And through this process we set clear impact targets and objectives, which are measured and reported on quarterly.
SECTOR FOCUS
FUND
Private Equity Fund I
Financial inclusion, access to affordable healthcare, and access to affordable education
Private Equity Fund II
Launching in Q4 2023
