Get access to predictable, growing cash-flow businesses.
For investors
- 01
There are approximately 5,000 businesses in South Africa earning between R10 million and R40 million EBITDA.
- 02
Traditional buyout funds can't play in this space — the fund economics don't make sense.
- 03
Whoever finds a way to access these businesses faces no competition, and can optimise the three main return drivers — cash yield, growth, and risk.
- 04
We built a way to make the R5–40 million space profitable. We combine the best of technology and people.
Why traditional buyout funds can't invest where we do
At best, a typical buyout fund needs five people to find, run and sell its investments — roughly R20m a year in salaries and overhead. For a 2% yearly management fee to cover that cost implies around R1bn under management. That team can run at most ten investments. If half of each purchase is paid for with borrowed money, that requires R100m of equity per deal, an enterprise value above R200m, and an EBITDA above R40m. Below that line, the fund economics fail. Above it, competition compresses returns.
What you would be subscribing to
Deal by deal, and paid as it earns.
This is not a fund with a clock on it. There is no pool of your money sitting with us waiting to be spent, no vintage year to be measured against, and no point at which we are forced to sell a good business because a mandate ran out.
You pick the deals
No blind pool. Every business is presented to you individually, with the full diligence behind it, and you decide on that one. Committing to Teiken does not commit you to anything we go on to buy.
One company per deal
Each acquisition sits in its own vehicle that holds the 50% stake, and you subscribe to that vehicle. Nothing is cross-collateralised — one investment cannot be dragged down by another.
Our money is in it
We co-invest alongside you in every deal we bring you. If a business is not one we would put our own capital into, we do not put it in front of you.
Cash comes out on a schedule
The businesses we buy already generate cash. A distribution policy is fixed in writing at signing and pays out quarterly, so your return does not wait on an exit that may never come.
Credibility
You're in experienced hands.
Transaction experience
As part of earlier deal teams, Fred has closed five transactions with a cumulative value of over R5 billion, in South Africa and abroad.
Execution experience
Across eight years of building startups, Leo has helped build three banks and two financial technology products. He builds the technology behind this model.
The raise
Places are limited.
We are raising R350 million, one business at a time, to buy five to six businesses. Once the places are taken, we close.