Executive summary

New GX Capital Holdings Proprietary Limited (“New GX”) is an established black owned and controlled investment company formed on strong entrepreneurial principles, uniquely positioned within its markets of focus and driven by shareholder value creation.

By taking a strategic and active approach to its investment portfolio, New GX provides its partners with the necessary business acumen, financial expertise and industry knowledge needed to assist them in achieving their growth potential through the repositioning of the entities into competitive and sustainable empowered companies delivering a notable impact on all stakeholders, be they internal or external.

New GX takes an active leadership and management role in its portfolio companies. Works strategically to strengthen their value proposition and market reach to achieve superior sustainable returns for investors.

Established in 2005, New GX was initially backed by Absa Capital, a division of Absa Bank Limited, who in addition to their private equity partnership with the group also held a 9.62% stake in New GX until December 2010.

Investment Philosophy

New GX as an active investor, adds value through its understanding of markets and operational requirements. Key focus sectors TMT; Energy; Enviro, Logistics and Infrastructure. New GX actively seeks out companies with strong management teams and excellent long-term prospects for growth, in South Africa and across the rest of the African continent.

New GX has a defined strategy for identifying and pursuing investments that fall in line with its overall strategic vision and mission, which is based on the following criteriascriteria’s:

  • As a minority shareholder, with significant influence on operations, with the potential to gain a majority stake over time where required;
  • Established companies ranked at the top end of their niche markets, or growth companies with the potential to reach the same placement;
  • Where there is a requirement for a value adding BEE partner; and
  • New GX’s differentiator is its active support of existing management within portfolio companies. Therefore a strong, reliable and market relevant team is an essential component of the assessment process. New GX requires that potential partners have a clear understanding of their market positioning, a defined vision and development strategy that allows it to make a significant impact in the market and is relevant to their internal and external stakeholders.

A black owned and controlled entity, New GX is segmented into its two core areas of expertise; Investment and Advisory.

While the core business model of the company relies on the identification of exceptional investment opportunities, New GX engages both as an equity partner and a management consultant that provides aftercare services, adding value not only through the injection of capital, but also through its operational and strategic management expertise.

This approach ensures that all portfolio companies are strengthened from within to enhance sustainable shareholder value.

Track Record and Funding Partners

Private Equity

New GX Investment (100%)

New GX Partnership

The partnership was formed in 2006 for the purpose of holding all of New GX’s transactions funded by Absa Capital. The first transaction was a 37.3% acquisition of an equity stake in Community Investment Ventures Holdings (“CIVH”).

The second transaction was a 21% equity interest in Bravo group as part of a leveraged buyout in 2008.

In 2009, Absa Capital decided to exit growth businesses to focus on leverage buyouts mainly in long established large entities. New Gx GX Partnership II, a partnership between New GX and Pan Africa Infrastructure Development Fund (“PAIDF”) acquired the 37.3% in CIVH in 2009.

Main Street 651 (100%)

New GX Partnership II

New Gx GX Partnership II acquired the 37.3% equity interest in CIVH from New GX Partnership in September 2009.

Investments

New Gx GX Enviro Solutions and Logistics Holdings (100%)

New GX is a 90% shareholder in a waste management business that trades as Nobomate soon to be rebranded New Gx GX Enviro.

New GX has a 40% equity interest in Jikelele Logistics a company that transports coal by road.

New GX has a 26% shareholding in Shangoni Management Services, a environmental management and safety, health, environment and quality (‘SHEQ’) assurance firm.

New GX TMT and Energy Holdings (75%)

New GX acquired a 90% equity interest in Dynamic Instruments in September 2012 funded by Standard Bank South Africa.

New GX acquired a 39% equity interest in Dartcom in Q4 2013 funded by FNB, a division of First Rand Bank Limited.