Dale Capital Group invests either in controlling interests or at least in influential stakes, in both private businesses and publicly-quoted companies. In the latter case, we aim to achieve private equity-style returns through rigorous active ownership.
Dale’s private equity investment strategy is as follows:
- Dale will build a portfolio of investments focused in Africa, so as to become an attractive, boutique African private equity company.
- The principal underlying investments will be structured within a protected cell structure (AGAPE-PCC), so as to ensure that the business risks of each transaction are legally ring-fenced within the relevant sectorial or geographical cell that is established for that purpose.
- Dale will maintain the flexibility to invest whenever the market conditions and risk/reward profiles are most favorable. No target weightings by country or sector are proposed.
- Dale has moved its strategy from being focused only on Southern African Development Community (SADC), and sub-Saharan Africa now becomes its footprint.
- Dale’s own target and range of transaction sizes will typically be those with an enterprise value of US$5m – US$50m (although both larger and smaller transactions will be considered).
- Dale’s invest / transaction focus will be much broader, and yet remain within core sectors including but not limited to expansion or late-stage development capital situations and management buy-outs and buy-ins.
- Dale will back strong management teams and motivate them with equity participation in their companies.
- Dale is an active investor that will sit on the investee company boards to focus strategic decisions, accelerate growth and drive value creation and transparency.
As often as possible, Dale Capital Group will also seek to structure its investment in a manner that gives it seniority to existing equity investors and guaranteed interim cash flows, while retaining the full upside available to equity investors. In line with this strategy, investments are often made via preference shares or convertible debt instruments.
The company believes that, consistent with its strategy of investing for long-term capital growth, it will typically hold investments for an average of around three to five years. Dale will, however, have no pre-defined constraints on the holding period for its investments, and will instead consider potential exits on a case-by-case basis. Where realistic value-creation plans are likely to take significant time to implement, the company may hold investments for a longer time period.
About LAMS & AGAPE
Dale ‘primarily’ focuses its investment strategy on investments in Mauritius. Dale uses the AGAPE-PCC structure for other sectorial investments outside of Mauritius, and the fundamental reason for this is that the AGAPE-PCC structure is only permitted to generate a maximum of 20% of its revenue in Mauritius. For sectorial investments outside of the Food Security Sector in Mauritius, Dale, as a lead promoter, has established in 2015 two new Mauritius-based entities:
Linked to African Management Services Limited (“LAMS”)
African Growth and Private Equity – Protected Cell Company (“AGAPE”)
LAMS is the licensed management company appointed to manage the AGAPE investment PCC and is responsible for advising the AGAPE board on all investment and divestment decisions. LAMS is wholly owned by Dale and holds the core shares in AGAPE.
LAMS provides the following services:
- Non-financial advisory
- Capital Raising
- Deal Procurement and Origination
- Investment Performance Monitoring
- Due Diligence
- General Management
LAMS sits atop a constellation of supporting firms and financial structures to allow for a powerful range of services to be delivered to the projects in our portfolio as well as ensuring the highest rate of return for our investors through successful project outcomes. As an active value manager – committing our own capital, experience, and ability to recognize excellent opportunities – we understand that growth and value creation takes persistent hard work and time. As such, our investment strategy targets a 4 to 7-year investment life-cycle.
In particular, LAMS is the lead promoter and shareholder behind Linked Property Consultants, a South African based property development company.
By virtue of LAMS acting as the management and advisory arm of AGAPE, an extensive and flexible financial platform is available to each project.
Each cell in AGAPE is limited to its own liability thus mitigating risk within the Dale Group. The AGAPE-PCC structure is used as an incubator for (non-Mauritius based) investments. The underlying investments are structured within a protected cell, dedicated either to a sector or specific project, so as to legally and economically ring-fence the business risk of each transaction. The creation of any new segregated cell requires the prior approval of the directors and of the Mauritius Financial Services Commission.
AGAPE cells are used both as a vehicle for Dale’s offshore projects and for third parties wishing to avail themselves of a regulated structure to house their own projects. AGAPE charges a management fee for these services.
Third party investors can participate in projects directly at the cell level as an alternative to investing through Dale itself.