Private Equity
Introduction
Conexus was established in October 2006 and targets significant minority equity positions in the SME market, partnering with entrepreneurs/owners to grow their businesses.
Douglas Investments has a strong and experienced team with a track record spanning over 15 years. We are responsible for managing the investments through the cycle, from deal flow generation and execution through to final exit.
Structure
Conexus Capital Growth Fund (“CCGF”) is the follow-on fund from Conexus Investment Fund. CCGF is structured as a vesting trust and holds the private equity investments on a series-by-series basis per private equity deal and investors that have participated in a particular private equity deal have a vested interest represented by units in that series.
Conexus Investment Fund (Fund 1) – Track Record
Vintage: 2007-2017
|
Investment |
X money |
IRR |
|---|---|---|
|
South Point |
1.41 |
6.44% |
|
Hillson Drilling |
1.44 |
40.32% |
|
Daly's Credit Corporation |
1.63 |
33.71% |
|
Redsun Raisins |
1.22 |
7.92% |
|
Poynting Antennas |
2.17 |
15.32% |
|
Total |
1.50 |
9.12% |
All investments had an underlying theme and required growth capital.
Comparable track record (2007 vintage) to PE industry
Pooled IRR by vintage year
Conexus Capital Growth Fund (Fund 2)– Track Record to Date
Realised investments
Trappers
Growth capital to specialist outdoor retailer
Subscribed new capital for corporate store roll out, private label development and further investment in IT systems
Exited to a key player in the apparel and footwear industry who was looking to bolt on an existing outdoor retail footprint
Etion Group
Growth capital in listed Group
Participated in private placement to repay a bridge facility which was used to acquire an industry leading technology developer and provider of cyber and information security solutions in the areas of digital authentication, encryption technology, digital signatures, and biometrics.
Exited by selling the underlying operating entities, delisting from the JSE and distribution of the proceeds to shareholders.
|
Realised investments |
X money |
IRR |
|---|---|---|
|
Trappers |
1.56 |
24.84% |
|
Etion |
2.3 |
23.20% |
Unrealised investments
Insimbi Refractory & Alloy Supplies Limited
Growth capital in listed Group
Participated in private placement to acquire AMR; effective reverse listing of largest scrap metal business
Acquisition provides vertical integration synergies and benefits to the Group
Jem
Growth capital in Fintech
Participated in a fund raise to allow for future growth for a new age HR tech business
Funding allowed for increased known universe of employees and assisting with building scale
Alaris
Formed part of offer consortium to delist Alaris from the AltX by way of a scheme of arrangement
Alaris is a leading radio frequency (RF) tech company that invest globally in RF related technology companies.
|
Unrealised investments |
X money |
IRR |
|---|---|---|
|
Jem |
1.07 |
9.05% |
|
Alaris |
1.04 |
8.95% |
Reporting
CCGF is reported on quarterly with statements and transaction reports sent to investors at the end of each quarter. Vested income reports are also provided annually for tax purposes.
The non-executive Advisory Board consists of Anthony Hewat (Chairman) and Peter Hird. The Fund is managed by Douglas Investments and is independently administered by Realfin Fund Services.