Alpha Cube Capital and RMB Corvest has signed a memorandum of understanding to establish a private equity fund – Alpha Cube Fund I – with RMB Corvest as the General Partner in the fund.
The fund will invest selectively in a variety of businesses, based on the following:
- South African companies making sustainable annual earnings above R40 million EBITDA
- Sub-Saharan African companies making sustainable annual earnings above US$3 million operating profit
- Profitable and cash generative companies
- An experienced and competent management team
- Demonstration of market or niche dominance/leadership
- Good growth prospects
The fund is not mandated to invest in the following transactions:
- Agriculture (except for the financing of agri-processing)
- Mining ventures (except for the financing of mining support services)
- Property ventures
- Unproven technology ventures
- Start-ups and turnarounds
The fund has a target fund size of R500 million.