Investment Benefits

Investment Approach

People

The theory of ‘co-investing’ alongside management is fundamental to our investment philosophy. As a rule, we generally do not acquire 100% of the shares in any business, and if we do so, it is a short-term approach, pending management acquiring shares. As a result, our emphasis on building partnerships with exceptional management teams, regardless of the nature of the industry in which the company operates, leads to high quality business relationships and investments.

Value

The second pillar of our investment philosophy is value, and more particularly, our ability to add value. If we do not fundamentally believe that we can add value, we will likely not invest. The value adding process can take a variety of forms, including but not limited to, reviewing corporate and funding structures, governance and strategic and general management support.

Returns

Many small to medium-sized businesses that we encounter, are not always focused on, nor driven by, the return on capital that is generated by their businesses. We maintain, that maximising return on capital for shareholders, is fundamentally important and we generally target and proudly achieve, returns substantially in excess, of those delivered by large fund managers.

Investment size

As a rule the group does not invest in greenfield projects or start ups. We also do not generally take up small interests, in large corporates because this is inconsistent with our investment strategy. As a result, we typically invest in small to medium size existing businesses.

Sector Expertise

At Gerber Goldschmidt Group, we have a keen interest in a diverse range of industries and sectors, allowing us to capitalise on unique investment opportunities and emerging trends. Our sector expertise includes, but is not limited to:

Food

The group has a long history in the food sector and has recently re-entered the juice business.

Manufacturing

We are invested in a number of diverse manufacturing businesses including: textiles, collated nails; vehicle security & electronics; industrial bakeware, and cold asphalt pothole repair products.

Bulk chemicals

The group imports and/or provides logistics for over 50,000 tons of chemicals per annum including sodium sulphate and soda ash.

Telematics

The Geotab Inc business was formed in South Africa under the banner of GGG. It is now the largest fleet management technology business in the word. We remain invested in Geotab Africa.

Trading & Distribution

The group’s experience and footprint in the trading sector is very broad and includes: paper, nails, glass, speciality coatings and polymers, mining chemicals, packaging, tyres, renewables, advanced radio systems, Casio products and power tools.