STRONG BALANCE SHEET AND LONG-TERM COMMITMENT
The Aka Capital team has managed to effect total, and in some instances partial, exits with spectacular returns. The group has realised capital and has built a strong balance sheet, which enables it to invest own capital. The group currently manages on-balance sheet proprietary funds, with no debt at the centre. The ability to invest proprietary funds results in the group having no exit timing pressures, and able to invest for the long-term, unconcerned with volatility. Additionally, the group is able to act quickly in a dynamic mergers and acquisitions environment, which is critical to unlocking value-enhancing opportunities.
Aka Capital believes corporate governance is not rooted in rules and regulations, but in the character of individuals and the extent to which these individuals apply attention, competence, fairness, transparency and stewardship to the affairs of all stakeholders.
The founders of Aka Capital have had long involvement in corporate governance regulation, including, inter alia:
- serving on the board of JSE Limited (“JSE”) as a non-executive director and chairman of the Audit Committee for about ten years. The JSE is licensed as an exchange under the Financial Markets Act, providing and regulating a market for trades in, inter alia, equities and equity derivatives. It is the largest exchange in Africa;
- serving on the Financial Services Board (“FSB”) for a period of over 10 years. The FSB, now transformed into the Financial Sector Conduct Authority, was a body with oversight on non-banking financial services including insurers, retirement funds, unit trusts, schemes, equities, etc.; and
- involvement in the formulation of the King Codes on Corporate Governance.
The Aka Capital team has successfully invested in, inter alia, the following industries and companies:
- Banking - Nedbank
- Building materials - Corobrik, Rosema/Era Bricks, NPC-Cimpor, Ceramic Industries, Italtile
- Engineering - Savcio, Murray & Roberts Cementation (including contract mining)
- Fintech - Capital Appreciation
- Gaming, hotels and tourism - Gold Reef Resorts/ Tsogo Sun, Protea Hotels
- ICT - Datacentrix
- Liquid fuels - Sasol Oil
- Mining - Koornfontein (coal), Batlhako (chrome), Vametco (vanadium)
- Packaging - Nampak
- Property - Riverside Development Initiative (RDI)