Africa Bitcoin Corporation Limited · JSE:BAC
Africa Bitcoin — Altvest Credit Opportunities Fund — Investor Presentation (June 2024)
61 slides from Africa Bitcoin's investor presentation, June 2024
Slide 1: Smart Funding Solutions
SMART FUNDING SOLUTIONS PARTNERING WITH AFRICA’S SMEs TO BUILD A BRIGHTER FUTURE DISTRIBUTED BY: ALTVEST SECURITIES, JURISTIC REPRESENTATIVES OF FSP 45810 ALTVEST CREDIT OPPORTUNITIES FUND LTD IS A REGISTERED CREDIT PROVIDER | NCRCP18241 Q2 2024
Slide 2: Introduction to Altvest
INTRODUCTION TO ALTVEST WHAT WE DO: ` THE BASICS OF ALTVEST REGULATED, LOW COST PLATFORM Provides SME’s access to debt and equity funding solutions; Allows investors, including retail investors, to co-fund these capital needs; and In so doing democratizes investment in private equity and other alter
Slide 3: Altvest in a Nutshell
ALTVEST IN A NUTSHELL Altvest is a listed company with its core features overlapping a traditional private equity fund Altvest retains a stake in each listing to ensure alignment with the success of the listing company as well as investors as a whole LISTED PREF LISTED PREF LISTED PREF LISTED PREF O
Slide 4: Altvest, Internationally Recognised as a Leading ESG Initiative
ALTVEST, INTERNATIONALLY RECOGNISED AS A LEADING ESG INITIATIVE Altvest has won an Environmental Finance’s Sustainable Investment award and an International Finance Award Awarded to asset owners, fund and portfolio management companies that demonstrate new methods or actions to Best ESG Investment I
Slide 5: Introduction to the Altvest Credit Opportunities Fund
INTRODUCTION TO THE ALTVEST CREDIT OPPORTUNITIES FUND What is ACOF? Our business focuses on delivering economic ACOF specialises in providing smart funding solutions to SMEs value and impact to 3 groups by offering tailored funding for working capital, asset finance, and energy projects Investors A
Slide 6: Key Fund Highlights
KEY FUND HIGHLIGHTS PRICING IMPACT PRODUCTS RETURNS Our loans are priced Our impact credentials o Working Capital o Our target returns: between 18%-36%a.p.r, can lower the borrowing based on the product cost for SMEs by up to o Asset Backed Finance o Debt: SA Prime +2% and borrower risk profile 25%
Slide 7: Early Impact: Our First 5 Months
EARLY IMPACT: OUR FIRST 5 MONTHS We have made a significant impact in our first 5 months, fully deploying our first mandate R82 million Funding to 13 SMEs in 11 distinct Deployed as at 30 April 2024 178 economic sectors as at 30 April Jobs have been saved as at 30 Apr 2024 Wholesale and Electricity,
Slide 8: ACOF's Approach in Detail
ACOF’S APPROACH IN DETAIL A solution that supports growth and reduces defaults 01 03 SUPPORTIVE OF WOMEN- FOCUSSED FUND VARIETY OF INITIATIVES CAPITAL STRUCTURE & FUNDING STRUCTURE TECH INSTRUMENTS 02 04 The building blocks needed to solve the funding conundrum TRUSTED INVESTMENT SUPPORT TECHNOLOGY
Slide 9: ACOF Pricing
ACOF PRICING How women empowerment credentials lower the cost of borrowing for SMEs Why we prioritise women-owned & run Impact Drivers ACOF invoice discounting can be 25% - SMEs Each selection is equally weighted at a 5% discount 40% lower than competitors to the borrowing rate. Up to 25% in total S
Slide 10: ACOF Investment Structure
ACOF INVESTMENT STRUCTURE ACOF will aim to raise debt and equity capital via listed markets, and on-lend that capital to SME’s, with preference given to women-owned and/or managed and/or staffed businesses in South Africa Fund Manager Asset Management Agreement 1. Ordinary Shareholding Debt Investor
Slide 11: Investment Terms
INVESTMENT TERMS Fund Structure Structure Open - ended Fund Manager Altvest Capital Ltd Subscription Method Equity/DMTN Program Instrument - Direct Ord & Pref Shares & Debt Notes Redemption Notice None Basic Terms Ordinary Preferred Ordinary Debt Shareholding Shareholding Funding Target Capital Rais
Slide 12: Collaboration Opportunities
COLLABORATION OPPORTUNITES To bolster the SME pipeline and amplify ACOF’s transformative potential, we seek to partner with corporations that have substantial procurement expenditures across multiple industries Benefits for Benefits for Benefits for ACOF Suppliers Partner Forge mutually beneficial p
Slide 13: ACOF Has Collaborated with the JSE, MTN's Xlerator & Goldman Sachs
SO FAR ACOF HAS COLLABORATED WITH THE JSE, MTN’s XLERATOR & GOLDMAN SACHS ACOF aims to broaden SME access to funding and mentorship The JSE has partnered with the Western Cape government to support SMEs with funding solutions. ACOF participates in this programme as a capital provider. The programme
Slide 14: Our People
OUR PEOPLE Warren Akshay Stafford Masie Warren Wheatley Snowy Masakale Sibongile Maputla Independent Executive Investment Private Wheatley Karan Chairman Director Specialist Credit EXTERNAL ACOF IC Chrizelle Nicolas GG Alcock Khaya Sithole Laura Deering Mazvita Maradzika ALTVEST BOD Independent Inde
Slide 15: How to Reach Us
How to Chrizelle van der Colff Business Manager Tatum Keshwar Director reach us Mobile: +27 71 603 1973 Email: chrizelle@altvestcapital.co.za Mobile: +27 82 532 5314 Email: tatum@altvestcapital.co.za
Slide 16: Annexures
Annexures 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital
Slide 17: The Current Funding Environment
THE CURRENT FUNDING ENVIRONMENT SMEs are fundamental to the ACOF’s Target Market: SMEs ACOF’s Target Funders: economy but struggle to access appropriate financing SMEs are essential to the SA economy Private credit is emerging as: (This problem is particularly acute for female-led SMEs, which are st
Slide 18: ACOF's Solution
ACOF’s SOLUTION ACOF has designed a unique integrated solution to solve the complex funding problem TAILORED FUNDING TECHNOLOGY EXPERIENCED EXPERIENCED MEDIA LEADERSHIP MEDIA TECHNOLOGY LEADERSHIP SOLUTION PARTNERS PARTNERS Technology allows ACOF to The teams is well equipped Unique media coverage A
Slide 19: ACOF's Investment Focus
ACOF’s INVESTMENT FOCUS ACOF seeks to provide Private Credit funding solutions to companies with a significant female presence ACOF - Investment Offering ACOF - Investment Strategy Sources of return Funding situations Funding instruments • Providing debt funding to businesses with demonstratable abi
Slide 20: Investment Risk and Credit Risk Management in ACOF
INVESTMENT RISK AND CREDIT RISK MANAGEMENT IN ACOF Supporting fundamentally strong businesses at appropriate lending rates with an obsessive focus on risk mitigation Funding Mix Available to Investors via different Entry Points: Dedicated experienced analyst team Loan Size Debt • Facilities typicall
Slide 21: Forecasted IRR to Investors ~26%-28% Over a 7 Year Horizon
FORECASTED IRR TO INVESTORS IS ~ 26% - 28% OVER A 7 YEAR HORIZON Inputs and assumptions (R, where applicable) • We have determined the equity value of ACOF to be ~R220 mil, based on a discounted cash flow analysis and supported by an external valuation. Initial Valuation R 220,000,000.00 Fund Manage
Slide 22: Key Fund Terms
KEY FUND TERMS Sources of Funds (R’ mil) Uses of Funds (R’mil) Funds (R'm) Raised Per Financial Year: Per Annum Donations Impact/Social Institutional Fixed Note Holders Equity Capital Deployed by Product Capital Capital Capital Fund Manager Costs R4,500 R140 FY1 R295.00 - - - R250.00 R45.00 FY2 R572
Slide 23: Key Fund Terms: IRR Scenario Analysis
KEY FUND TERMS IRR SCENARIO ANALYSIS Key assumptions Default rate* on Asset Finance Overall returns are most sensitive to the default rate of loans and the IRR Matrix upfront fees on Working Capital. As working capital loans represent the Upfront fee on 7% 6% 5% 4% 3% largest portion of the book (50
Slide 24: The ACOF Investment Philosophy and Process
THE ACOF INVESTMENT PHILOSOPHY AND PROCESS Our Philosophy has been founded upon the following three pillars. These pillars are intrinsic to each stage of our process. ACOF Borrower Profile • Female presence within a business is incentivised • Established business with a proven business model and sco
Slide 25: Investment Themes and Alignment to UNSDGs
INVESTMENT THEMES AND ALIGNMENT TO UNSDG’S While by no means restricting its mandate to the investment themes below, ACOF will actively attempt to source deals in the following classes Bias toward women-owned enterprises and undertakings 1. SMEs: 2. Infrastructure: 3. Sustainability: 4. Education: S
Slide 26: Governance and Support
GOVERNANCE AND SUPPORT Risk and compliance framework Policies, Frameworks, Procedures, Regulators Board Board of Directors • Board Charter • Director Declarations • Delegation of Authority AUDIT EXECUTIVE RISK COMMITTEE Committees COMMITTEE COMMITTEE • Audit Committee • Social and Ethics • Investmen
Slide 27: Annexures
Annexures 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital
Slide 28: ACOF Screening Criteria
ACOF SCREENING CRITERIA Your business needs to adhere to the following criteria for ACOF to process and approve your loan request Your business has been in operation for longer than 1 year? Your business has a turnover of more than R1 000 000 per year? No judgements against your company or directors
Slide 29: Overview of ACOF Lending Process
OVERVIEW OF ACOF LENDING PROCESS 1. Quote process : Applicant obtains a quote on the lending platform on an 6. The full loan pack is presented to the ACOF investment committee estimated “pre-approval” amount 2. Application process : Applicant completes formal application on the 7. Approval / Decline
Slide 30: Loan Process - Understanding the Initial Due Diligence Phase
LOAN PROCESS - UNDERSTANDING THE INITIAL DUE DILIGENCE PHASE • Altvest Credit Opportunities Fund Credit scoring is a TransUnion provide: Affordability Assessment • Details around general commercial and credit behavior • Altvest Credit Opportunities Fund receives an in-depth combination of data analy
Slide 31: Loan Process - Our Digital Platform Powered by CreditEase
LOAN PROCESS - OUR DIGITAL PLATFORM POWERED BY CREDITEASE Scaling Altvest Credit Opportunities Fund’s lending operational excellence and credit risk analysis capability - reducing subjective analysis and ensuring objectivity CREDIT SCORE DSC The tri-factor credit moderation process establishes a cre
Slide 32: The ACOF Product Platform
THE ACOF PRODUCT PLATFORM The platform at our disposal is not only robust but also brimming with an extensive array of functionalities that are yet to be fully explored. Registration Onboarding Assessments Compliance Project Finance Vehicle Structured Disbursement Finance Finance s Web Micro Asset f
Slide 33: Loan Process - Understanding the Post-Investment Phase
LOAN PROCESS - UNDERSTANDING THE POST-INVESTMENT PHASE Monitoring loans to prevent defaults Post-Loan Risk Management • Post-investment monitoring is conducted collectively by the Altvest Credit Opportunities Fund (via monitoring of loan repayments and evaluation of financial statements) and CTSE (v
Slide 34: Annexures
Annexures 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital
Slide 35: ACOF Has Partnered with the JSE Enterprise Acceleration Programme
ACOF HAS PARTNERED WITH THE JSE ENTERPRISE ACCELERATION PROGRAMME TO BROADEN SME ACCESS TO FUNDING The JSE has partnered with the Western Cape government … and ACOF is proud to partner to expand our impact to support SMEs with funding solutions… drivers Our focus is on providing affordable funding s
Slide 36: ACOF with Goldman Sachs Will Offer Loan Recipients Free Access to Mentorship
ACOF WITH GOLDMAN SACHS WILL OFFER LOAN RECIPIENTS FREE ACCESS TO MENTORSHIP AND EDUCATIONAL RESOURCES Borrowers have free access to 10 women-focused online courses on business and leadership Business Development Fundamentals of sales & marketing Explore potential growth opportunities for your Devel
Slide 37: Annexures
Annexures 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital
Slide 38: ACOF Execution Team
ACOF EXECUTION TEAM WARREN WHEATLEY CHRIZELLE VAN DER COLFF • 20+ years of experience across Asset Management, Private Equity, Banking and • 20+ years of experience in Banking, Operations, Marketing and Business Institutional Capital Markets Optimization • CA(SA), CFP, Post Graduate Diploma in Corpo
Slide 39: ACOF Execution Team
ACOF EXECUTION TEAM SHEENA SINGH NICOLAS MUGISHA • ~20 years of experience in Banking, Operations and Process Optimization • ~ 10 years of experience in Management Consulting and Digital Media • Bachelor of Commerce in Business Administration (NQF 7) • Nic has a degree in Finance and Accounting as w
Slide 40: ACOF Execution Team
ACOF EXECUTION TEAM NALEDI MOLOI TAKURA MUDIMU • ~5 years NALEDI MOLOI – Update? of experience in Investment Analysis and Equity Research • [TEXT] Bachelor • • ~5 of Commerce years of experience Economics, in Investment Analysis andEconometrics Equity Research and Investment Management • PRIOR EXPER
Slide 41: ACOF External Investment Committee
ACOF EXTERNAL INVESTMENT COMMITTEE Altvest Credit Opportunities Fund external investment committee, driven by Expertise, Diversity, Proven Success, and Unstoppable Energy EWA HARCOURT- SNOWY SIBONGILE MAZVITA LAURA AMANDA WOOD MASAKELE MAPUTLA MARADZIKA DEERING KABAGAMBE • 20+ years of experience in
Slide 42: ACOF Internal Investment Committee
ACOF INTERNAL INVESTMENT COMMITTEE Altvest Credit Opportunities Fund internal investment committee, driven by Expertise, Diversity, Proven Success, and Unstoppable Energy AKSHAY TATUM CHRIZELLE WARREN REGGIE NICOLAS KARAN KESHWAR VAN DER COLFF WHEATLEY DLAMINI MUGISHA • 20 + years of experience in •
Slide 43: ACOF Board of Directors
ACOF BOARD OF DIRECTORS The Altvest Credit Opportunities Fund Board of Directors brings an exceptional level of experience, diversity, track record and energy. EWA NORMA SNOWY TATUM AKSHAY WARREN HARCOURT- SEPHUMA MASAKALE KESHWAR KARAN WHEATEY WOOD • 20 + years of experience in • 20+ years of exper
Slide 44: Staff Statistics
STAFF STATISTICS 66% Female Directors BEE Level 2 Average Age of Execution Team: 36 Average Age of Non-Executive Board Members: 44 Over 200 years of combined experience | 44
Slide 45: Annexures
Annexures 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital
Slide 46: Who Altvest Is
WHO ALTVEST IS A PLATFORM THAT ENABLES INVESTORS ENTREPRENEURS Cost effective mechanism to invest in and gain exposure to alternative Raise capital from retail & assets institutional investors Support entrepreneurs by Raise equity or debt from capital participating in their capital markets raising E
Slide 47: How It Works
HOW IT WORKS: Altvest acquires stakes in qualifying entities, funded by listing preferred ordinary shares: The preferred ordinary shares represent the economic value of the underlying investment opportunities E.g. proceeds from Listed Pref Ordinary Share 2 were used to fund the acquisition of invest
Slide 48: And Altvest Has Reached Several Milestones So Far
AND ALTVEST HAS REACHED SEVERAL MILESTONES SO FAR | 48
Slide 49: Examples of How Our Platform Has Raised Millions for SMEs
EXAMPLES OF HOW OUR PLATFORM HAS RAISED MILLIONS FOR SMEs UMGANU BAMBANANI ALTVEST CREDIT LODGE FAMILY OPPORTUNITIES FUND Umganu Lodge is a ultra luxury 5-bedroom Villa on the Bambanani is a unique family-centric restaurant in ACOF offers tailored funding financing solutions to banks of the Sabie Ri
Slide 50: Our Value Add Is Focused on Businesses, Investors and Broader Society
OUR VALUE ADD IS FOCUSED ON BUSINESSES, INVESTORS AND BROADER SOCIETY FOR FOR FOR BUSINESSES INVESTORS SOCIETY Provide capital solutions aimed at addressing Access to asset classes that are diversified, Democratise access to private equity by allowing the lack of fit-for-purpose funding mechanisms d
Slide 51: What Makes Altvest Unique
WHAT MAKES ALTVEST UNIQUE • Great investment ideas have traditionally been shared between small networks and not accessible QUALITY INVESTMENT OPPORTUNITIES ARE INACCESSIBLE TO RETAIL INVESTORS • Altvest aims to provide a publicly accessible platform connecting capital to ideas • The platform itself
Slide 52: Altvest's Investment Strategy
ALTVEST’S INVESTMENT STRATEGY IS PREMISED ON SUPPORTING FUNDAMENTALLY STRONG BUSINESSES AT THE RIGHT VALUATION Key principles driving our investment strategy ALIGNMENT OF UNDERVALUED ATTRACTIVE BUSINESS VALUE INVESTING PROTECTION OF CAPITAL STAKEHOLDER PARTNERSHIP BUSINESSES MODEL INTERESTS Our inve
Slide 53: Our Opportunities Are Sourced via an Innovative, Multi-Channel Strategy
OUR OPPORTUNITIES ARE SOURCED VIA AN INNOVATIVE, MULTI-CHANNEL STRATEGY Key principles driving our investment strategy THE IDEAL FIT OPPORTUNITY SELECTION Our ideal investment partner demonstrates traits of a traditional We have created a multi-platform, multi-channel investment sourcing model that
Slide 54: Altvest Is Committed to a Philosophy of Shared Value
ALTVEST IS COMMITTED TO A PHILOSOPHY OF SHARED VALUE BETWEEN PREVIOUSLY EXCLUDED COMMUNITIES AND CAPITAL MARKETS OUR UNDERSTANDING PHILOSOPHY OUR PROCESS We believe investment opportunities should not neglect those who need them Our philosophy drives our investments process, we believe growth is exp
Slide 55: Our Operating Model Ensures We Remain Close to Investment Companies
AND OUR OPERATING MODEL ENSURES THAT WE REMAIN CLOSE TO INVESTMENT COMPANIES, BOTH DURING AND AFTER LISTING SHAREHOLDER EXECUTIVE MANAGEMENT SUPPORT PERFORMANCE MANAGEMMENT & CORPORATE ENGAGEMENT CAPITAL ALLOCATION GOVERNANCE We foster collaborative relationships with key Engage with CEO / CFO / Boa
Slide 56: Altvest Has Actively Integrated ESG into Every Part of the Investment Process
ALTVEST HAS ACTIVELY INTEGRATED ESG INTO EVERY PART OF THE INVESTMENT PROCESS INVESTMENT ESG STEP INTERGRATION Community input to ensure prospective investments Origination represent desired, yet unattainable, asset classes Investment scorecard explicitly includes environmental, Evaluation and execu
Slide 57: Altvest Securities
ALTVEST SECURTIES Altvest Securities is an integrated, technology-enabled, platform that provides our retail investors with access to a suite of investment opportunities Altvest Retirement Bookbuilds Annuity CLIENTS ONBOARDED Altvest Retirement Annuity AUM: ASSETS AVAILABLE: Total Investment Facilit
Slide 58: Altvest Capital Directors
ALTVEST CAPITAL DIRECTORS To drive our best practices, our team is well conceptualised. We understand that, to succeed, we must attract the right people to our firm. As such, our board is rich with experience. STAFFORD MASIE WARREN WHEATLEY FAY MUKADDAM HENK BARNHOORN • Stafford Masie has over 20+ y
Slide 59: Altvest Capital Directors
ALTVEST CAPITAL DIRECTORS To drive our best practices, our team is well conceptualised. We understand that, to succeed, we must attract the right people to our firm. As such, our board is rich with experience. BRIGHT KHUMALO JOANNE BAYNHAM KHAYA SITHOLE GG ALCOCK • Khaya has 20+ years of experience
Slide 60: Media Reach for Altvest & ACOF
MEDIA REACH FOR ALTVEST & ACOF Leveraging media to attract investors and borrowers, raise brand awareness and provide access to market opportunities 5.2M Twitter Impressions Twitter is leveraged to share insights relating to potential assets to be listed on Altvest and provide thought leadership Alt
Slide 61: Confidentiality Disclaimer
CONFIDENTIALITY DISCLAIMER This confidential document has been prepared by Altvest Credit Opportunities Fund Certain statements in this document (other than the statements of Proprietary Limited (“Altvest Credit”).This document has been prepared for information historical fact) may contain forward-l
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