SME investing is not trivial!

In fact, sourcing, selecting, investing and growing SME's into a big business supply chain is not trivial!

ABOUT

As South Africa’s most effective Enterprise and Supplier Development Equity Fund, LinkMakers serves South African corporates and big businesses, multinationals and government in providing the most impactful, cost-effective Enterprise and Supplier Development (ESD) Fund solution in South Africa.

Built by idealists wanting to create a vibrant, inclusive and diversified economy for SA to thrive, it is driven by pragmatists who understand the risks of SME development and growth, corporate supply chains, business cash flow and the BEE codes. These combined forces have resulted in a BEE compliant ESD fund that delivers the lowest cost per point and SME supply chain readiness turning a compliance cost into a strategic return.

LinkMakers Capital VCC is a majority black-owned, BEE level 2 company.

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APPROACH

SME investing is not trivial! In fact, sourcing, selecting, investing and growing SME’s into a big business supply chain is not trivial!

EXPERTISE

Designing funding solutions, investment mandates, risk & return management within funded portfolios as well as harvesting SME’s to ensure return

ACCREDITATIONS

A few of the companies we are accredited and associated with: SAVCA, FSB as well as being SARS compliant, contact us for the full list

OUR APPROACH

Applying the direct experience of starting, building, funding, growing and exiting SME’s over a period of 23 years has enabled us to develop and implement a proprietary SME funding approach that considers the following four aspects:

the entrepreneur, their circumstances, aptitude and abilities

the current development stage in the SME business and how to grow it to the next level

big business supply chain challenges, procurement standards and cost sensitivities

how to invest into an SME and manage the risk/return equation for funders

The challenging environment that business finds itself facing today requires innovative solutions to ESD that go beyond compliance and must deliver returns to the business. BEE compliance, cost management and supply chain performance must all be met!

With 23 years of SME development on-board including sourcing, selecting, developing and growing businesses into bankable, investable and sellable assets, LinkMakers has evolved a unique approach to SME equity funding.

SME’s are loaded with risk. Most start-up businesses fail within the first three years and the remainder struggle to reach their 5thyear of operation.  Of the 15% of businesses that do survive the first 5 years of trading, most find themselves caught in a trap of survival and moribund growth.

The challenges are profound including factors such as the entrepreneur’s capability and psychology, the business environment, business development skills, funding access and market access amongst others.

Success in SME investing requires a profound understanding in both entrepreneurs and SME development. Investing in any business with an annual turnover below R50m is all about investing in the entrepreneur. Thereafter, understanding the phase of development that the businesses is in is required to understand what is required to grow that business to its next level.

Building a portfolio of SME suppliers requires an understanding of both SME capabilities and big business operations.

The ESD pillar in the BEE Codes has brought about a new reality for big businesses, the entry of SME’s into their supply chains. This, combined with pressure to secure points in preferential procurement (PP) has defined our SME investment and development activities into majority black-owned businesses with annual turnovers less than R200m.

Developing an appropriate SME supplier portfolio requires a solid understanding of big business, socio-economic conditions and SME capability. Once the portfolio requirements are understood, sourcing, selecting and building the SME suppliers to a big business ‘service level agreement specification’ is a task in itself. Successful entry into a big business supply chain for an SME needs to be accompanied by equity growth funding. To grow the equity investment made by growing the SME requires an intimate understanding of the SME’s scalability and growth through BDS and a managed funding strategy.

With 14 years of supplier development, localization, supplier innovation and skunk works, our approach was recognised at the Global Procurement Awards in London in 2015 across three categories including Innovation, Collaboration with a corporate client and Socio-economic Impact, setting a standard for global best practice.

AREAS OF EXPERTISE

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SOURCING

We source the best possible, qualifying entrepreneurs and SME’s to meet your supply chain needs
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INVESTING

We match investment to growth in an SME that optimises and manages the risk-return outcomes
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GROWING

We build SME’s into supply chain ready, bankable, investable businesses that meet your service level agreements
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HARVESTING

We harvest and exit minority stake equity investments in SME’s to deliver returns in your hands and the SME’s future

MANAGEMENT TEAM

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THEO VOSTER

More than 20 years’ experience in Investment markets.Run one of SA’s biggest private client and at the time the leading online stockbroker in SA for 5 years. Co-founded Galileo Capital in 2005 – directly and indirectly managing more than R2bn worth of investment assets on behalf of clients. Hosted own TV show (Sakegesprek met Theo Vorster) on DSTV’s kykNET program and is a regular contributor to RSG’s Geldsake business radio program. B.Com (Honours) Investment Management

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PAVLO PHITIDIS

Entrepreneur with 25 years of starting, building, accelerating and exiting SME’s. Started, built and sold 12 SME’s generating an IRR of 44,2% over 7 year period.  Co-founded Aurik Business Accelerator, an organisation that has worked with over 1,479 SME’s with average annual turnovers of R17,2m. Entrepreneur & SME development content contributor on Radio 702, Cape Talk, Business DayTV and Entrepreneur Magazine.B.Com (Finance, UCT); MBA (Strategy & Finance, WBS)

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JACKIE MATHEBULA

Corporate experience in industrial and financial sector with Iscor, Sanlam, Goldfields, Harmony Gold, Buildmax. Entrepreneurial experience in BEE ownership solutions, ESD with Transcend Advisory and Aurik Enterprise Development. Extensive experience in enterprise development, business development, B-BBEE, and strategic leadership and experienced in managing stakeholder relationships in complex projects. BA, Honours (UNISA); MM, HR (Wits); MBA (UP)

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CARIEN ENGELBRECHT

In the 1990s, Carien led an economic inclusivity programme for one of South Africa’s largest developmental initiatives, the Alex Renewal Programme. This involved sourcing, selecting and developing Small and Medium Enterprises (SMEs) and enabling their delivery across multiple projects.  With this highly specialised capability in supplier development, she joined Aurik as a founder member in 2002.  B.Proc (Law), Diploma Policy and Management (WITS) and an MBA

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BASANI MALULEK

Basani specialises in advising on structuring and implementing BEE transactions. Prior to joining Transcend Capital, Basani was a corporate finance executive at RMB where she advised on BEE transactions collectively valued at over R50bn. Basani was instrumental in advising on the landmark R25bn Sasol Limited BEE transaction.

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BRUCE HUNT

Bruce specialises in structuring multinational BEE Empowerment transactions and designing and implementing democratic Employee Owned Trusts and Broad Based Ownership Schemes. Prior to joining Transcend Capital, Bruce was a trader and structured finance professional at Investec Bank.

PERFORMANCE

LinkMakers Capital was built off a private equity investment fund established by some of the founders in 2001. This saw twelve SME’s built from start-up to sale generating an IRR of 44,2% over 7 years. The business development capabilities developed through this process has subsequently been enjoyed by over 1,458 black-owned SME’s that have been sourced, selected and accelerated for big business supply chains. In addition, the founders currently care for R2bn of private assets under management.

IRR over 7 years (%)

SME's built since 2001

Black owned SME's

ACCREDITATION'S & ASSOCIATIONS

LinkMakers Capital is accredited and / or associated with the following companies. For a full list please do not hesitate to contact us.

SAVCA intends to play a role which is a meaningful one in the Venture Capital and Private Equity by promoting self-regulation, lobbying on behalf of industry, disseminating information and publicity, arranging training for the staff of its members, researching the industry in South Africa

The FSB is an independent institution, established by statute to oversee the South African non-banking financial services industry in the public interest, and fully funded by fees and levies imposed on this industry. Established as a reputable authority in this field, locally and internationally

The South African Revenue Service (SARS) is the nation’s tax collecting authority. SARS encourages compliance with tax and customs law to ensure that everyone pays their fair share. We do so in a manner that does not unduly impede trade, economic growth and development

CONTACT US

If you are interested in any of the information provided above, feel free to contact us on the details below. Alternatively we have also provided a contact form for your perusal.