Ecsponent at a glance

Ecsponent Limited, listed on the JSE’s main board under the Financial Services – Speciality Finance sector, predominantly creates wealth by investing in companies that offer a range of niche financial services in South Africa, Botswana, Swaziland and Zambia.

These services vary in different jurisdictions of operation.
The core business units include:

Investment Services

The Investment Services business unit provides an effective channel to market for financial services and products. Ecsponent leverages this network to market its own and third party products through the network of FSB-accredited investment professionals. The group’s ability to raise capital to fund investment both in underlying assets and potential equity investments, is key to Ecsponent’s growth strategy.

Investment services include capital raising that targets two market sectors, namely retail and institutional investors.

  • In South Africa, the primary channel to the retail market is preference share investments under the R5bn listed preference share programme. The preference share structures are based on redeemable preference shares that provide fixed returns on a capital growth, or monthly dividend basis. The group also attracts institutional debt funding for its operations.
  • In Botswana, the group raises capital entirely from institutional sources.
  • In Zambia, the group has joined forces with GetBucks to offer a range of retail financial services.
  • In Swaziland, the South African model is replicated. Investment funds are obtained through a retail investment offering.

Credit

Ecsponent’s Credit unit addresses the demand for funding and other challenges that dynamic businesses face.

  • The Secured Business Credit model provides wholesale funding to target niche businesses. The nature of these transactions is typically medium-term facilities, but with a short-term call-up to ensure liquidity and significant debt cover ratios to minimise rsik.
  • Enterprise development and supply chain support provide large corporate business with an effective way of managing preferential procurement, improving reliable delivery whilst ensuring true social upliftment and skills transfer for local enterprises. This offering combines the expertise of Ecsponent Development Fund (EDF) and Ecsponent Procurement Services (EPS), which is the procurement leg of enterprise development.

Equity Holdings

Equity Holdings – Ecsponent has a well-defined investment philosophy and invests in companies that demonstrate a strong growth track-record, coupled with significant commercial potential that result in above average investment returns.

The group strives to acquire interests in developing, high-tech businesses with high intellectual property and high barriers to entry. Currently, the group’s equity investments holdings include investment in fintech, biotechnology and media intelligence.

  • While the Ecsponent group focuses primarily on the financial services industry, it diversifies its investments across multiple industries and geographies by identifying private equity and mergers and acquisition opportunities with the potential for high returns. Currently, the group’s private equity investments are diversified across multiple industries:
Financial Services
  • MyBucks
  • Ecsponent Financial Services Zambia
Healthcare
  • Go Life International
  • Digital Media and Marketing
  • Truth Digital Group
    • The Group has recently announced transactions valued at R1.2 billion that will be concluded in the second half of 2018, pending shareholder approval. These transactions will strengthen the Group’s financial services holdings in Africa and invest in several lucrative opportunities presented by renewable energy on the continent.

       

    Ecsponent's growth story

    As a JSE-listed company with operations expanding across Africa, Ecsponent focuses on opportunities where local businesses can be leveraged, grown or brought into the group.

    Ecsponent has a strong future-based investment philosophy and deploys investment funding to companies that demonstrate a strong growth track record, coupled with untapped commercial potential that can result in above average investment returns. Overall, the group seeks out value-enhancing acquisitions that complement the group’s business model and are aligned to its expansion plans or other investment.

    History

    Established in 1995, the venture capital investment holding company John Daniel Holdings (JDH) listed on the JSE’s Venture Capital board in August 1998.

    In 2010, the company’s shareholders introduced a group of investors to the business, which sparked the start of a long-term relationship and resulted in a fundamental shift in the business’ future. Later in the same year, a new board of directors and management team were appointed to JDH. This change in leadership refocused the company’s strategic direction, resulting in significant growth, improved governance and relationships with shareholders.

    Following these changes, the primary funder at the time agreed to convert its debt to equity, backing the management team and the group’s strategy. And so, from humble beginnings, a venture capital company with two subsidiaries evolved into what is today, a fully-fledged and rapidly growing African Financial Services group with multiple subsidiaries. The group has expanded its horizons to include a number of geographies across Africa but has retained the same core focus which has made the business so successful.

    Ecsponent’s exponential growth

    Vision

    Ecsponent intends to become the premier provider of financial services in the niche market segments of the territories…

    Mission

    The Ecsponent group strives is to create and provide a secured environment for predominantly investors to obtain…

    Values

    The Ecsponent group fuses traditional, proven investment principles with progressive, creative thinking that…

    Goals and Initiatives

    The group seeks to identify, develop and profitably commercialise intellectual property and technology predominantly…