Selective Empowerment Investments 1 Limited (“SEI1”) is a broad-based, impact-focused investment holding company with a diverse portfolio of public and private equities available in a single tradable share.
SEI1 was established in 2007 as part of a broader investment holding scheme. SEI1 was particularly established to enable the small investor to acquire an investment that offered a healthy spread of top- class shares listed on the Johannesburg Stock Exchange (“JSE”). SEI1 has over the years revised its strategy from making investments in listed equities, to making investments in unlisted equities as a form of diversification. SEI1 also serves as a Broad-Based Black Economic Empowerment (“B-BBEE”) vehicle, and prides itself in meeting the aims of B-BBEE through investing as an equity partner in both listed and unlisted equities. SEI1 is a Level 2 B-BBEE Contributor.
VISION & MISSION
SEI1’s vision is to be the preferred global empowerment equity investment partner. This vision is achieved through SEI1’s mission which is to grow capital through a diversified investment portfolio with sustainable income generating investments supported by a strong management team at investee company and at SEI1 Group levels. The three main underpins to our vision and mission include the following:
• Strategic Equity Stakes: SEI1 invests in listed, semi-listed and unlisted equity instruments and actively seeks and subscribes to B-BBEE transactions.
• Capital Growth & Maximising Returns: SEI1’s primary investment objective is to provide shareholders with long-term capital growth and to maximise the return for our shareholders through an investment policy that reflects a spread of investments aiming at capital growth, whilst cultivating an investment portfolio that is sustainable.
• Facilitation of Financial Inclusion: The participation by SEI1 in various investment opportunities, especially in the Small Micro and Medium Enterprises (SMME) space allows SMME’s that would have otherwise had limited access to finance, an opportunity to grow and expand, resulting in not only financial inclusion but also social inclusion and economic development.
Our values represent the core priorities of our organisation, including what drives stakeholders/shareholders and employees within the organisation to achieve set strategies.
SEI 1’s guiding philosophy and values are as follows:
Integrity – Our conduct will demonstrate respect for key moral principles that include honesty, fairness, equality, dignity, diversity and individual rights
Accountability – We are accountable – individually and in teams – for our behaviours, actions and results, both positive and negative
Commitment – We focus and concentrate on the core activities in a consistent manner
Creative Thinking – We embrace change, for ourselves and for our customers and nurture and support creativity and the development of new ideas, products and processes
The company invests in listed and unlisted instruments and actively seeks and subscribes to B-BBEE
transactions. In line with SEI1’s investment philosophy, we seek a strategy that delivers returns.
• SEI1 focusses on investing in companies that may be distressed, with established business models that are identified as a potential and fit in with our sectoral view.
SEI1 invests in the following sectors:
o Agri & Agri-processing
o Financial Services
• SEI1 also seeks to invest in companies that have the capability to create value through a combination of add-on acquisitions, strategic repositioning, and consolidation strategies.
• All investments made by SEI1 are forward-looking, based on market fundamentals, with an emphasis on a top-down approach to valuation.
• SEI1 follows a balance between active and / or a passive investment strategy and has a strong preference for strategic and/ or significant influence which it believes is a significant driver for consistent returns.
• SEI1’s investment strategy is typically not to seek board control. SEI1 however ensures that all minority protections are in place where minority investments are made.
• SEI1 prioritizes investments that are strategic to the South African economy and makes in equity investments that will result in socio-economic impact that includes the following:
• Assists in the social and economic transformation of South Africa, without compromising investment returns. BEE ownership, mostly by management and staff, will be encouraged at all levels of investments to achieve a minimum portfolio level of BEE ownership of greater than 25%.
• Contributes to the South African economy by keeping ownership of assets and resources in South Africa; and
• Promotes the economic transformation of small, medium and large sized companies with specific emphasis on ownership, management, employment equity and skills transfer.
• Small, medium distressed businesses
MANAGEMENT & GOVERNANCE
The Management team is responsible for the day-to-day activities of SEI1 including identification of investment opportunities, due diligence of investment opportunities, monitoring of investee companies for unlisted equities, liaising with the designated asset manager for the listed portfolio, reporting on the investment portfolio’s performance and driving non-investment related initiatives.
The Board approves the strategy of SEI1 and has ultimate control of the company according to its Memorandum of Incorporation and Board Charter. Through its oversight and strategic steer, it ensures that SEI1 capitalises on its opportunities as an ethical, decisive, and responsible corporate citizen. The careful selection of individual directors, to ensure the most appropriate combination of expertise and experience, underpins the effectiveness of the Board in fulfilling its role.
SEI1 has a fully constituted board in line with the requirements of the Companies Act and has in place the following board committees:
• Investment Committee
• Social & Ethics Committee
• Remuneration & Nominations Committee
• Audit & Risk Committee