Our Approach

We believe that the lack of infrastructure and the rising population in Africa will drive the demand for increased infrastructure development which will continue to create attractive opportunities for the MIH Group. We look for businesses with strong management teams, stable cash flows and robust growth prospects.

Our creative structuring and financing solutions allow us to maintain flexibility with respect to deal structure, and we utilize a prudent approach to leverage. MIH Group’s Operating Executives and Advisors are an integral part of our team, providing strategic insight, operational oversight, and senior counsel that help drive growth and performance to create long-term value and sustainable businesses.

Investing For Growth

We invest in African-based businesses across a wide range of sizes and industry sectors.

Our typical size range is USD1 million to USD5 million but we also invest in smaller or larger companies. In some cases size is a major benefit while in others, particularly in multi-site roll-outs, smaller companies can grow more rapidly. Using the breadth of our experience in different sectors, we can judge the impact of the economic cycle on each and adjust when we invest accordingly. We have also successfully established new companies in markets that were not served by an attractive existing player.

We use our sector knowledge, our own research and input from external specialists to build up a detailed profile of a company’s market and competitive positioning. This provides a valuable base for devising a strategic plan, and we support the management team in developing that strategy further during our ownership. We like to invest in growth initiatives and innovation early on, which gives time to refine them to ensure they have maximum impact on the exit value.

Building Partnerships

Working in partnership with the managers of our portfolio companies has been central to our success. Talented managers can transform otherwise unexciting businesses, often through better marketing, digital strategies or greater operational focus. Conversely, even the best-positioned companies will not progress well without strong leadership. High-quality CEOs set the culture, motivate their teams and frequently have an innate understanding of their customers and their markets.

We back people as much as their businesses and pride ourselves on being able to identify and work with CEOs with widely different personalities and experiences. We build flexible partnerships, allowing them to play to their strengths while we focus on areas where our skills and expertise are most relevant. We do not get involved in the day-to-day running of our portfolio companies, unless where this is clearly defined.

The managers of prospective portfolio companies meet all our senior team members at some stage during the investment process. We will not invest if we do not believe the CEO can deliver the strategic plan. As continuity of relationships is so important, the leader of our deal team stays with the portfolio company through to exit.

Consistent with this partnership approach, we are open and straightforward in our dealings. Management teams value our integrity, our analytical rigour and pragmatism. They may find the relationship challenging, but also rewarding.

Adding Value

Mahuma Group adds value to its portfolio companies at all levels – strategic, commercial, digital, financial and operational.

Companies' needs are diverse and vary during the different stages of their development, influenced by market dynamics and technological change. We recognise this and, during our ownership, we focus on areas in which we can make the greatest contribution, drawing on our experience and skills.

Possibly our most important role is to offer advice and support. From extensive experience of similar situations we know what works and what usually doesn't. We understand the challenges of growing mid-market companies and what is required during the next stage of their development. Managers usually find our experience and level-headed approach particularly valuable in periods of adversity.

Our specialist portfolio team works alongside our deal team, sharing their knowledge and best practice and identifying when specialist external advice may be required. We have a strong track record of working closely with management teams to support operational and financial improvement, organisational design and organic growth.

With more than a dozen investments completed, we have an industry-leading record for identifying what helps mid-market companies grow through different economic cycles. We play a key role in expanding our companies in the local market and across the Africa content through new site openings, additional distribution channels and end markets, e-commerce and acquisitions. Our excellent long-term relationships with debt providers enable us to create the most effective financing structures to fund these initiatives.

Recognising the fast pace of change in technology and consumer behaviour, we focus on optimising digital, social media and IT strategies across our portfolio. We invest in systems and processes designed to enhance staff recruitment, engagement and retention. We help management teams strengthen their customer offering, using a multi-channel approach wherever appropriate, building on the experiences of other portfolio companies as well as our contacts with digital specialists.

Realising Investments

Taking control of exit processes is a key factor in maximising the value of our portfolio companies.

Since commencement, we have successfully realised 5 investments, where we have reinvested proceeds into our other portfolio assets. We know what acquirers are looking for, what they most value and what they want to avoid. Key attractions are a proven expansion plan and a diversified, defensible revenue stream. We work with management teams over the life of an investment to ensure that the strategic development reflects these priorities. We always take the lead in the exit process to maximise value.

Typically we hold investments for four to five years but have a totally flexible approach to exit timing. We have a record of selling companies for very high multiples of cost and sometimes retain our investments for extended periods to achieve this. The majority of our exits have been to trade and financial buyers. European and Chinese buyers have been particularly prominent in recent years, attracted by the growth opportunities on the African continent.

Portfolio of Work

We give forward-thinking leaders the freedom and resources to accelerate transformational change. Our companies are always hungry, always moving, always innovating. We’re behind them all the way.