Investment Approach

Investment Approach

Bopa Moruo pursues a disciplined investment approach to finding and creating value by investing in established businesses with experienced executive management, attractive business fundamentals and long term prospects for profitability, growth and cash generation. Bopa Moruo seeks to align both our short and long-term interests with our partners, in particular management teams, by facilitating meaningful ownership in the businesses they lead. Bopa Moruo principals work closely, through active personal involvement, with management and other stakeholders to achieve portfolio companies’ key strategic objectives.

The key elements of Bopa Moruo’s private equity investment approach include:

  • Investments are evaluated on capital appreciation based on cash returns to investors which removes the subjectivity of earnings and fluctuating valuation.
  • The focus on long term capital appreciation requires a focus on growth and efficient use of capital
  • Great businesses and great investments come from building true partnerships with our investors and the leaders and companies in which we’re invested
  • Investors can rely on being aligned with the investment team for the medium to long term
  • The investment team ensures that the management of underlying investment businesses are incentivised to create medium to long term alignment with investors
  • The appropriate incentives combined with active management result in superior investment returns
  • Bopa Moruo employs an active value creation strategy in the businesses we invest in
  • Bopa Moruo has a philosophy of working closely with each portfolio company’s management team in implementing strategic growth plans, increasing operating cash flows and building long-term equity value
  • Bopa Moruo has a track record of leveraging its market knowledge and broad networks to facilitate significant operational, strategic and business development initiatives

A general equity strategy is appropriate in the markets we invest in, and diversifying across industries will help avoid systemic and industry cyclicality risk and enhance risk adjusted returns

  • Bopa Moruo is committed to meaningful and sustainable Broad-Based Black Economic Empowerment (“B-BBEE”) whose fundamental objective is to advance economic transformation and the economic participation of black people in the South African economy.
  • Bopa Moruo’s approach, in partnership with the portfolio company management, is to develop or enhance the long-term B-BBEE plan that will enhance portfolio company operations.
  • Bopa Moruo is a 100% black-owned and black managed private equity management company.