Our Strategy

Fund Strategy

OVERVIEW

Our fund strategy is centered around disciplined investment in growth sectors.

We target companies with strong potential for operational improvement and scalable growth, leveraging our expertise in strategic advisory and financial structuring to unlock value.

By focusing on sectors that demonstrate resilience and consistent demand, we aim to deliver superior returns while maintaining a balanced risk profile.

Our active, hands-on approach to portfolio management ensures that each investment is closely monitored and supported to achieve its full potential.

Sector Selection

We have a preference for FMCG services and financial services but will consider new sectors based on the requirement that the sector has a positive growth outlook.

A core part of our Fund IV strategy, and what will set it apart from most other Private Equity funds, is that it aims to leverage benefits from existing Fund III investments in FMCG services and financial services.

This intent is multi-faceted and encompasses not only knowledge of industry, but also the potential to exploit commercial and even operational synergies.

We believe this strategy will allow unique access to investment opportunities together with elevated returns.

Company selection criteria

Our selection of specific investments is underpinned by a preference for:

  • Well-established businesses of scale that are profitable and cash generative
  • Unique insight and/or preferential value proposition
  • Ability to partner with willing lenders to optimise returns
  • Growth prospects and/or an option to increase initial shareholding
Investment Size

Larger investments (typically R150m-R250m) are intended to facilitate entry into a sector by the Fund while smaller investments (typically <R100m) are pursued as bolt-on acquisitions.

Capital Deployment

We believe Lindicom’s capital deployment and asset management processes are substantively differentiated in these areas:

  • Investment case development contains a heavy emphasis on independent generation of investment outlook, risk mitigation measures and determination of deal pre-requisites
  • From inception the negotiation of investment terms incorporates the investment business case requirements and optimal fund capital structure
  • Effective ability to align company strategy and management objectives with investment business case parameters

Fund Structure

OVERVIEW

Our fund structure is designed to align the interests of both the management team and investors, ensuring a clear, transparent, and efficient investment process.

With a target fund size that reflects our growth ambitions and market opportunities, we maintain a balanced approach to capital deployment across sectors and geographies.

The structure includes a defined investment period, followed by a strategic timeline for value creation and exits.

Our fee model is competitive and performance-driven, with a focus on maximising investor returns.

Additionally, strong governance practices and a well-established compliance framework underpin our commitment to responsible fund management.

Legal Structure

Our funds are private funds. Our Fund III deployment strategy has progressed well and we are currently raising capital for Fund IV.

Fund IV subscription by investors external to South Africa is via Lindicom Global, a Mauritius domiciled investment vehicle, while subscription by investors resident in South Africa is via Lindicom Fund IV (Pty) Ltd, a South African domiciled investment vehicle.