Brian Joffe, who founded Bidvest in 1988, is listing Long4Life, an investment firm with an expected capitalization of R2 billion (about $150 million) on the Johannesburg Stock Exchange at the end of this week. The investment company will not be raising any additional capital after the listing date, according to the SENS announcement published last week.
Joffe is providing R100 million or approximately $7.5 million of the capital himself, with the balance of the capital being provided by a group of unnamed investors. Broadly speaking, Long4 Life will back consumer sector-oriented companies or ones which the firm describes as having a “lifestyle” focus. It will steer clear of banking, mining and resources opportunities.
Long4Life will back both listed and unlisted assets, and will look to deliver annualized growth in excess of 15% over the medium-to-long term. The Board will be responsible for sourcing deals and making the investment decisions, prioritizing high-growth businesses who have strong management teams and proven track records. It’s also prepared to use “prudent levels” of financial gearing for some of its assets depending on the investment’s cash-generation ability.
Investec Bank and Standard bank are acting as Joint Financial Advisors, Joint Bookrunners and Joint Transaction Advisors for the listing. ENSafrica is providing legal advisory services for the company, while Webber Wentzel is advising the Bookrunners.