Mandate, approach
and process

A singular focus on private equity produced the philosophy that underpins how every investment at Hamilton is researched, tested and constructed into the portfolio.

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Our philosophy

Knowledge and experience allow us to take a more holistic approach to investment. We hold to long-term value investment, while our specialist asset management focus lets us take advantage of short-term growth opportunities as they appear.

The philosophy is the foundation of the investment process — not a statement alongside it.

Our approach

Every underlying investment is subject to rigorous, in-depth research. Portfolio construction then adheres to our own multi-dimensional approach, so that no single position carries more of the fund than it should.

Capping assets under management is part of the same discipline: it keeps execution honest.

The investment process

Due diligence runs in two phases. Only investments that pass the first proceed to the second, and only the results of the second reach the Investment Committee.

ORIGINATION

Opportunity received

Sourced directly or introduced, and logged against the mandate.

PHASE 01 — DD LITE

Initial screen

A light due diligence pass establishes whether the opportunity can meet the mandate at all.

PHASE 02 — IN-DEPTH DD

Full assessment

Comprehensive review of the major business areas, completed principally in-house and, where appropriate, with external advisors.

DECISION

Investment Committee

Findings are presented for a final decision, strictly in accordance with the Investment Mandate.

DECLINED — MOST END HERE
ADVISORS ENGAGED
INVESTED & MONITORED

Investment criteria

Ten detailed criteria are applied during due diligence, grouped in three sets. Not every investment meets all of them; none proceeds without meeting most.

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01 - 03 Capital and scale
  • 01Investment mainly in new shares to create growth capital, and only rarely in existing seller shares.
  • 02Business models with potential for significant scale, both within South Africa and internationally.
  • 03A strong competitive position within the targeted sector, with differentiated intellectual property such as patents.
04 - 06 Stage and maturity
  • 04Growth-stage venture businesses with a revenue and profitability track record requiring growth capital — a large percentage of the overall portfolio.
  • 05Early-stage venture businesses with revenue — a small percentage of the overall portfolio.
  • 06Mature private equity businesses that have already gained traction with a referenced client base.
07 - 10 Management and protection
  • 07Strong management teams with attractive optimisation opportunities.
  • 08High gross margin and strong potential for recurring revenue.
  • 09Clearly defined, built-in deal mitigation and value protection structures, acceptable to sellers, as far as feasible and economically viable.
  • 10Entities that warrant the investment of management time.

Carl Kleynhans

Chief Executive Officer

I have lived and worked, up to CEO level, mainly in South Africa but also in the UK, Australia, USA, Mauritius, Namibia and other African countries in the fields of management consultancy, accounting within international entities/own enterprises, and in particular, turn-around, business optimization, growth and business valuation. Qualified in the fields of Accounting and Business management.

Contact

Correspondence relating to existing investments and investee companies.

EMAIL
info@hamiltonprivateequity.co.za
SOCIAL

Investor relations

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