Broad-Based Black Economic Empowerment (B-BBEE) is a South African socio-economic development initiative which aims to redress socio-economic inequalities of the past by bringing ‘Black’ people into mainstream economic activities.
B-BBEE OWNERSHIP SOLUTIONS
DISCOVER THE POWER
OF PARTNERSHIP
WHAT ARE THE B-BBEE
CODES OF GOOD PRACTICE?
The B-BBEE Codes of Good Practice provide a framework for firms operating in South Africa to calculate a B-BBEE score that measures the following five elements:
These elements are:
OWNERSHIP
MANAGEMENT CONTROL
Skills Development
ENTERPRISE & SUPPLIER DEVELOPMENT (ESD)
SOCIO-ECONOMIC DEVELOPMENT
Of these five elements, three are identified as priority elements on which companies should achieve a minimum level of compliance: Skills Development, ESD and Ownership.
Ownership participation by Black people in businesses is identified as the most important of the priority elements.
The B-BBEE Codes of Good Practice specifically provide criteria in terms of which Private
Equity Funds can be considered to be Black shareholders in their portfolio companies. By
complying with these regulated criteria, Invequity offer investors and their portfolio
companies the opportunity to introduce Black Ownership while at the same time committing
capital for investing into high impact companies that are directly and independently Black
owned.
It is Invequity’s mission to give rise to capital flows that will allow us to invest into good
quality, high impact, black empowered companies that will deliver strong returns for our
investors, and also contribute to economic ownership transformation.
BLACK OWNERSHIP SOLUTIONS
WE CONTRIBUTE TO THE B-BBEE AND BLACK OWNERSHIP of our corporate investee companies, with the imperative of sourcing and channelling additional funds into high-impact, empowered enterprises..
BLACK OWNERSHIP SOLUTIONS
WE CONTRIBUTE TO THE B-BBEE AND BLACK OWNERSHIP of our corporate investee companies, with the imperative of sourcing and channelling additional funds into high-impact, empowered enterprises..
ALL-IN FUND
Designed for clients with businesses that are either Exempt Micro Enterprises (EME’s) with annual turnover below R10 million or smaller Qualifying Small Enterprises (QSE’s) with annual turnover below R20 million the All-In Fund offers a low cost, low risk Black Ownership and investment solution.
Where cash flow is limited yet your customers demand a competitive B-BBEE level from you, the All-In Fund provide an affordable 51% Black Ownership solution and Level 2 BEE Status.
The All-In Fund offers a simple investment from as little as R6 000 p/m*. Returns are capped at a targeted 6% compound average growth rate to offer an inflation adjusted return of your capital over the life of the fund.
LET’S GROW FUND
Let’s Grow Fund is designed to offer qualifying corporate clients with Black Shareholding. Suitable for businesses of relatively lower valuations that are either Exempt Micro Enterprises (EME’s) with annual turnover below R10 million or smaller Qualifying Small Enterprises (QSE’s) with annual turnover below R50 million.
Invequity partner via the Let’s Grow Fund for a maximum 51% investment stake with
shareholder investors looking for sustainable growth, market attractiveness and competitiveness for their portfolio companies.
The Let’s Grow Fund introduces significant B-BBEE and corporate shareholder benefits to
our qualifying portfolio companies e.g. B-BBEE Level 2 for EME’s and QSE’s. Invequity
ensures that the Let’s Grow Fund at all times maintains the regulatory capital allocations to portfolio companies that are 25% independently black owned and managed.
The Let’s Grow Fund was created for clients who wish to participate in the full return and transformation opportunity generated from Invequity’s active management of its investment portfolio.
LET’S GROW FUND
Let’s Grow Fund is designed to offer qualifying corporate clients with Black Shareholding. Suitable for businesses of relatively lower valuations that are either Exempt Micro Enterprises (EME’s) with annual turnover below R10 million or smaller Qualifying Small Enterprises (QSE’s) with annual turnover below R50 million.
Invequity partner via the Let’s Grow Fund for a maximum 51% investment stake with shareholder investors looking for sustainable growth, market attractiveness and competitiveness for their portfolio companies.
The Let’s Grow Fund introduces significant B-BBEE and corporate shareholder benefits to our qualifying portfolio companies e.g. B-BBEE Level 2 for EME’s and QSE’s. Invequity ensures that the Let’s Grow Fund at all times maintains the regulatory capital allocations to portfolio companies that are 25% independently black owned and managed.
The Let’s Grow Fund was created for clients who wish to participate in the full return and transformation opportunity generated from Invequity’s active management of its investment portfolio.
DASH FUND
The Dash Fund is designed for higher value clients with annual turnover exceeding R50m. The Dash Fund is designed with simplicity in mind for qualifying companies that need Black Ownership supporting their strategic and transformation goals to scale their business. Managing time and resources efficiently is key.
The Dash Fund has a simple and seamless implementation achieving the desired Black Ownership credentials in portfolio companies without disrupting business activities. Committed capital contributions made to the Fund are directed to impactful and innovative Black empowered businesses.
Any B-BBEE ownership transaction should align to the business principles of any good ownership transaction without B-BBEE – it should make good business sense, be commercially viable, contribute good strategic value to the business growth, protect shareholder value, and demonstrate sustainable transformation. The Dash Fund delivers on these principles as a B-BBEE shareholder in portfolio companies.
BESPOKE FUNDS
Bespoke Funds are individually designed for large businesses and multinational businesses seeking specific investment outcomes unique to their particular requirements, and introducing Black Ownership credentials.
The Bespoke Fund solution is designed to solve for complex ownership structures often found with large companies or multinationals looking to invest or expand in South Africa and on the South African continent. Invequity specialize in crafting bespoke corporate Funds offering a number of funding and deployment options that can suit the unique prerequisites of a company’s resources, constraints and risk profile. Invequity’s Bespoke Funds drive significant investment that impact economic inclusion and growth in the South African economy.
