Unlocking Value as
AN ENGAGED SHAREHOLDER
Value Capital Partners is an investment company which holds minority positions in listed companies and acts as an engaged shareholder in those entities to drive maximum returns for all stakeholders through shareholder activism, good governance and alignment of incentives.
OUR BUSINESS MODEL
The key principles driving VCP’s investment strategy include
Value investing
A value investor with an appreciation that value is created at the point of buying, and this should be done significantly below intrinsic value.
Protection of capital
There is more time spent upfront understanding the downside risk to each investment and having a substantial margin of safety between intrinsic value and share price. Returns are secondary to protection of permanent capital.
Undervalued businesses
VCP invest in strong businesses that are trading at a share price significantly below intrinsic value, prior to our intervention.
Attractive business model
VCP seeks listed equity investments in businesses with attractive business models considering factors such as strong brands, unique competitive advantages, and pricing power. This allows us to further improve operating margins, drive balance sheet optimisation and strong flow generation, as well as introduce disciplined capital allocation and dividend policy to enhance returns to all shareholders.
Partnership
We collaborate with management, the Board, and other shareholders. Control is not critical for the VCP business model. We prefer partnership at a discount to control at a premium.
Alignment of stakeholder interests
Alignment of interests with investors, shareholders and management. VCP founders and staff are significant investors in their own business, which provides a stable pool of permanent capital to match the investment horizon of investee companies.
LATEST PORTFOLIO
Our concentrated portfolio include strategic investments in these strong businesses, acquired at a significant discount to intrinsic value, in which we act as an engaged shareholder to unlock value for all stakeholders.
Altron
PPC
Metair
Lesaka
Tiger brands
Adcorp
Sun International
Advtech
Pepkor
Chris Meyer, Former CEO, Lesaka Technologies
In my experience, VCP stands out as the foremost activist investors in South Africa. They have a proven track record of revitalising businesses, offering comprehensive support in areas like governance and strategy. They have been incredibly supportive shareholders, always available for consultations as we navigated challenges.