Investment Criteria

Business-related Criteria

We pay particular attention to the extent to which potential investee companies meet the following investment criteria:

  • The track record of the business – profitability, cash flow, balance sheet
  • Sufficiency of forward cash flows
  • Attractive growth prospects
  • Competent management who shares in the investment risk
  • A sustainable competitive advantage
  • Export performance/ potential
  • Extent of vertical integration
  • Quality of corporate governance
  • Attractive entry values and good exit potential

Development Impact-related Criteria

Agri-Vie’s mandate requires that its transactions also meet the following criteria:

  • A demonstrably positive impact in general on rural socio-economic development
    – wealth creation, rural employment, entrepreneurship, diversification of the
    economic base
  • Participation by local entrepreneurs and shareholders in ownership and
    management
  • Utilisation of local resources
  • Socially and environmentally sustainable
  • Sound corporate governance.

With regards to South African investments, the prevailing codes on black economic empowerment (BEE) apply to each transaction.