We are value-focused,
LONG-TERM INVESTORS
VCP DEPLOYS THE BEST OF PRIVATE EQUITY PRINCIPLES IN THE LISTED EQUITY SPACE THROUGH:
01
Acting as an engaged shareholder with long-term focus
Acquiring sizeable minority stakes in listed businesses that have an attractive business model but which are trading significantly below their intrinsic value.
02
Taking a collaborative
approach
Working collaboratively with our portfolio companies’ Board of Directors, management and other shareholders to unlock value.
03
Alignment with leading asset
managers
Our model has been complimentary to traditional institutional asset managers since our inception and we have become a trusted business partner.
04
Championing effective and
responsible governance
We strive to enhance effective corporate governance and believe that strong and well-functioning boards are a significant competitive advantage.
05
Leveraging the knowledge of
industry experts
We work extensively with industry experts both within management and on boards, and actively seek external experts from South Africa and abroad.
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.