The Process
- Coregrowth Impact
Diversified Solutions
We offer a range of customisable options to fit your investment objectives, we’ll work with you to create a strategy that meets your objectives and delivers measurable impact.
Access to Private Market Opportunities
We provide investors with access to curated small and medium-sized business opportunities that are typically unavailable through traditional investment channels. While public markets offer liquidity and scale, they represent only a small portion of the broader economy. The majority of real economic activity takes place within privately owned businesses, many of which require growth capital but lack access to flexible funding solutions. Our approach focuses on identifying these opportunities and structuring them into investable propositions. By bridging the gap between investors and SMEs, we unlock access to a segment of the market that has historically been difficult to participate in. Each opportunity is assessed based on business fundamentals, cash flow characteristics, and growth potential, ensuring that investments are grounded in real economic activity rather than speculative valuation. For investors, this creates the ability to participate directly in the performance of operating businesses, gaining exposure to entrepreneurial income streams and diversifying beyond traditional asset classes such as listed equities, bonds, or property.
Structured, Performance-Linked Returns
Unlike traditional fixed-income investments where returns are predetermined, coregrowth structures investments so that returns are linked to the underlying performance of each business. This is typically achieved through revenue- or profit-sharing agreements, where investors participate in a percentage of business income over a defined period. This model creates alignment between investors and business owners. When businesses perform well, investors benefit from increased returns; when performance slows, the structure naturally adjusts, reducing pressure on the business and improving long-term sustainability. Returns are typically structured with defined targets and caps, providing clarity on expected outcomes while allowing for upside participation. This approach enables investors to access return profiles that are often higher than traditional income instruments, reflecting the additional value created through direct participation in business growth. By linking returns to real performance rather than market movements, the model offers a more transparent and tangible investment experience.
Diversified Portfolio Construction
Managing risk is central to achieving consistent investment outcomes. We address this through diversified portfolio construction, where investor capital is allocated across multiple SMEs rather than concentrated in a single business. Each portfolio typically includes a mix of businesses across different industries, maturity levels, and risk profiles. This diversification ensures that the performance of any one business does not disproportionately impact overall returns. Stronger-performing businesses can offset underperformance elsewhere, creating a more stable and predictable return profile over time. The portfolio approach also allows for a balanced return strategy, combining stable, cash-generative businesses with higher-growth opportunities. This blend supports the overall target return while managing downside risk. For investors, diversification provides exposure to a broader segment of the economy, reducing reliance on individual outcomes and enhancing the resilience of their investment.
Defined Investment Horizon & Liquidity Management
Investments facilitated by coregrowth are structured with a defined time horizon, typically ranging between two to four years. This allows businesses the necessary time to deploy capital effectively and generate returns, while providing investors with clarity on investment duration. Given the private nature of these investments, liquidity is managed through structured mechanisms rather than immediate access to capital. Investors commit funds for the duration of the investment period, aligning expectations with the long-term nature of business growth. To enhance flexibility, coregrowth aims to facilitate a secondary participation mechanism where investors may exit positions by selling their participation to new or existing investors, potentially at a discount depending on market conditions. This approach balances the need for capital stability within businesses with the practical considerations of investor liquidity, creating a structured yet flexible investment environment.
Active Deal Structuring & Risk Management
We play an active role in structuring each investment to balance risk and return. This includes assessing business performance, defining appropriate funding amounts, and designing revenue or profit-sharing agreements that are sustainable for the business while delivering attractive returns to investors. Risk management is embedded throughout the process, from initial screening to ongoing monitoring. Businesses are evaluated based on their financial performance, operational stability, and ability to generate consistent cash flows. In addition, investment structures may include return caps, performance thresholds, and diversified exposure to mitigate downside risk. Where appropriate, additional safeguards such as reserve buffers or phased funding can be implemented. This disciplined approach ensures that investments are not only attractive from a return perspective but are also structured to withstand real-world business variability.
Alignment of Interests
A core principle of the model is the alignment of interests between investors and business owners. Traditional debt structures often place fixed repayment pressure on businesses regardless of performance, while equity structures can dilute ownership and create misaligned incentives. By contrast, performance-linked funding aligns both parties around a shared objective: sustainable business growth. Investors succeed when the business performs well, and business owners retain flexibility during periods of lower performance. This alignment encourages responsible capital deployment, stronger operational focus, and a partnership-driven approach to growth. It also fosters transparency, as both investors and businesses are directly connected through the performance of the underlying operations. Ultimately, this creates a more balanced and sustainable funding model that benefits all stakeholders.
Building a Scalable Investment Ecosystem
The model is designed not just as a series of individual transactions, but as a scalable ecosystem that connects capital, businesses, and opportunities over time. As the model grows, the focus is on building a consistent pipeline of investment-ready SMEs, refining data-driven insights into performance, and creating repeatable structures that deliver value to both investors and businesses. Over time, this ecosystem can support increased deal flow, improved risk assessment, and greater investor participation. It also opens the potential for additional features such as portfolio-based investing, secondary participation markets, and enhanced reporting capabilities. The long-term vision is to create a sustainable and accessible private market investment environment — one that enables investors to consistently access high-quality opportunities while supporting the growth and resilience of SMEs.
- Key benefits
Maximise Returns & Impact
- The process is managed by investment and business specialists
- We prioritise data-driven strategies that deliver tangible results.
- Our footprint spans industries and geographies, ensuring scalable solutions.
- Our Focus
Driven by Social and Economic Impact
Objective
The strategy invests capital with the intention of generating investment growth as well as social and environmental impact.
Philosophy
Provision of capital to entrepreneurs and commercially viable businesses that are well positioned to address some of South Africa’s most pressing challenges while showing high growth potential.
Our strategy has a broad mandate. We aim to identify opportunities to invest in businesses that operate in growing or mature markets. Strict Sustainable Development Goals (SDG) impact criteria are applied to all potential investee companies in order to support businesses that have a meaningful role in addressing issues currently affecting South Africa.
The Outcome
- Enhanced potential of growth and returns for investors.
- Tangible social and environmental impact.
- Long-term value creation for your businesses.
- Fund Leadership
Guided by Expert Leadership
Rhys Erispe, our Fund Manager, holds a BCom in Finance & Investments and a Postgraduate Diploma in Investment Management. With a background as a Fund Consultant and Research Analyst, Rhys brings a wealth of knowledge and experience in managing complex investment portfolios. His expertise ensures a strategic approach to our fund's objectives, focusing on impactful investments that align with both financial growth and sustainable development goals.
Rhys Erispe
Qualifications: BCom (Finance & Investments), PGDip Investment Management
Experience: Fund Consultant, Research Analyst
Be a part of something bigger. Invest in South Africa’s businesses, even in their toughest moments.
Invest in South Africa’s future. Support SMEs through your CSR/CSI projects and be part of a sustainable, impactful change.
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