Diversified financial services group, Capricorn, has launched Capricorn Capital, a corporate advisory firm with offices in Windhoek and Johannesburg.
Capricorn Capital provides strategic, corporate finance, capital raising and specialised finance advice to public and private companies, private equity firms, family offices, governmental and other bodies located in or wishing to invest in southern Africa.
The Windhoek Observer’s Chamwe Kaira (CK) asked Mark Durr (MD), Managing Director of Capricorn Capital on how the firm hopes to navigate the current tough business environment.
CK: How will the Namibian business community benefit from the services of the recently launched Capricorn Capital?
MD: Capricorn Capital is founded on three pillars: Corporate Finance, Capital Markets and Specialised Finance. Each pillar has its own areas of specialisation and, together, they provide the Namibian business community with a comprehensive suite of investment banking advisory services.
Our services empower business owners and executives to achieve the next level of their growth aspirations. Our services include, inter alia, assisting in the formulation of an acquisition or funding strategy and ultimately on origination of deals and getting these deals to closing.
We guide our clients through the entire process, be it a disposal, acquisition, capital raising or structured finance deal, from inception to closing.
We are skilled at originating deals, establishing the deal architecture, structuring, preparing the necessary valuations, assisting executives in negotiating the deals, navigating the regulatory requirements and commercial review of the legal agreements.
CK: Capricorn Capital comes at a time when both Namibia and South Africa are in a recession, how do you hope to succeed in this tough economic environment?
MD: Markets and economies always have and will forever move in cycles and there are great businesses that are founded during both the highs and during the lows which outlast cycles.
In addition, tough times often present great investment opportunities and can lead to increased merger opportunities. We’re building a great business with great people and great partners and we will proactively work with stakeholders to create and unlock opportunities, sometimes where opportunities are hard for others to see.
CK: Will Capricorn Capital fund projects or will the firm help the Capricorn Group/Bank Windhoek, Bank Gaborone/Cavmont identify projects for funding?
MD: In time, we may evolve the balance sheet side of Capricorn Capital’s advisory business to partner clients with either equity or acquisition finance.
We are content in the foundational phase to introduce opportunities for the banks within our broader group where it may make sense for them to participate, otherwise we will assist both clients seeking to raise capital and local and external sources of funds seeking local opportunities to invest in.
Despite the current economic environment, there are pockets of opportunity which we intend to facilitate, thus fulfilling one of our objectives of being a key driver of positive economic change in the region.
CK: The statement you issued last week said in addition to advising clients, Capricorn Capital will assist Capricorn Group to expand its operations in southern Africa. May you give more details on this?
MD: The Capricorn Group is a dynamic, forward looking business with a keen interest on acquisitive growth and we are constantly hunting for and evaluating opportunities for the group to benefit from potential value accretive deals across the region. Never waste a good recession; there’s always opportunity to position for growth when the cycle turns.
CK: What are some of the potential funding areas that are unexplored in Namibia, Botswana, Zambia and South Africa?
MD: We can assist both large, listed companies and smaller, unlisted companies (South Africa) N$300 million and (Namibia) N$100 million raise equity, debt and Mezzanine debt, thus increasing liquidity in the region. This is where potential clients should come and speak with us.