Africa Bitcoin Corporation Limited · JSE:BAC
Africa Bitcoin — Altvest Credit Opportunities Fund — Investor Presentation (March 2024)
62 slides from Africa Bitcoin's investor presentation, March 2024
Slide 1: Smart Funding Solutions for SMEs - Partnering with Africa's Women
§ SMART FUNDING SOLUTIONS FOR SMEs - PARTNERING WITH AFRICA’S WOMEN TO BUILD A BRIGHTER FUTURE Q1 2024 DISTRIBUTED BY: ALTVEST SECURITIES, JURISTIC REPRESENTATIVES OF FSP 45810 ALTVEST CREDIT OPPORTUNITIES FUND LTD IS A REGISTERED CREDIT PROVIDER | NCRCP18241
Slide 2: Introduction to Altvest
INTRODUCTION TO ALTVEST What we do: Our value add to South Africa: • Provides SME’s access to debt and equity funding solutions; • Access to alternative capital pools for entrepreneurs; • Allows investors, including retail investors, to co-fund these capital needs; and • A focus on woman empowerment
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 Altvest identifies and carefully selects investme
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 Best ESG Investment Most Innovative Initiative of the Year, Alternative Africa 2023 Investment Platform Awarded to asset owners,
Slide 5: Introduction to the Altvest Credit Opportunities Fund
INTRODUCTION TO THE ALTVEST CREDIT OPPORTUNITIES FUND What is ACOF? Our business focuses on delivering ACOF specialises in providing smart funding solutions to economic value and impact to 3 groups SMEs by offering tailored funding for working capital, asset finance, and energy projects Investors A
Slide 6: Key Fund Highlights
KEY FUND HIGHLIGHTS Pricing Our loans are priced between 18% - 36% a.p.r, based on the product and borrower risk profile including the annualized cost of fees Impact Our impact credentials can lower the borrowing cost for SMEs by up to 25% while ensuring defaults R20m remain around the market standa
Slide 7: Early Impact: Our First Months
EARLY IMPACT: OUR FIRST 3 MONTHS We have made a significant impact in our first 3 months of operations with a strong pipeline for the next quarter R20m Disbursed in first 3 months R114m in active pipeline Our diverse pipeline consists of potential loans to the energy, finance, motor and property ind
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- FUND VARIETY OF FOCUSSED CAPITAL STRUCTURE FUNDING INITIATIVES STRUCTURE & TECH INSTRUMENTS 02 04 The building blocks needed to solve the funding conundrum TRUSTED INVESTMENT SUPPORT TECHNOLOGY
Slide 9: ACOF Pricing - How Women Empowerment Credentials Lower Cost of Borrowing
ACOF PRICING - HOW WOMEN EMPOWERMENT CREDENTIALS LOWER THE COST OF BORROWING FOR SMES Why we prioritize women-owned and run SMEs ACOF invoice discounting can be 25 ~ 40% lower than competitors • Supporting women-run SMEs can positively impact the economy • Information is based on an R300,000 invoice
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 Ordinary Shareholding Preferred Ordina
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 1. Ordinary Shareholding 2. Preferred Ordinary Shareholding 3. Debt Funding Target Cap
Slide 12: Collaboration Opportunities
COLLABORATION OPPORTUNITES To bolster SME pipeline and amplify ACOF’s transformative potential, we seek to partner with corporations who have substantial procurement expenditures across multiple industries Benefits for Partner An operating structure that assists in service provider payment terms man
Slide 13: Illustrative Supplier Industries
ILLUSTRATIVE SUPPLIER INDUSTRIES ACOF effectively partners with corporates that feature wide-ranging supplier networks Example breakdown of corporate’s supplier network comprising approximately 1000 SMEs Engineering Electrical & Maintenance companies Plumbing Co. services 157 236 603 Waste Signage I
Slide 14: 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 The Xlerator programme is MTN’s business Cape government to support SMEs with Enterprise and Supplier Development The Goldman Sac
Slide 15: Altvest & ACOF Execution Team
OUR PEOPLE Warren Akshay Stafford Masie Warren Wheatley Norma Sephuma Tatum Wheatley Independent Executive Independent Executive Wheatley Karan Chairman Director Chairwomen Director ACOF BOD GG Alcock Khaya Sithole Snowy Masakale ALTVEST BOD Chrizelle Nicolas Independent Non Akshay Karan Independent
Slide 16: How to Reach Us
HOW TO REACH US Chrizelle van der Colff Business Manager Mobile: +27 71 603 1973 Email: chrizelle@altvestcapital.co.za Tatum Keshwar Director Mobile: +27 82 532 5314 Email: tatum@altvestcapital.co.za
Slide 17: Annexures
ANNEXURES 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital credit opportunities fund
Slide 18: The Current Funding Environment
THE CURRENT FUNDING ENVIRONMENT ACOF’s Target Market: SMEs ACOF’s Target Funders: SMEs are fundamental to the SMEs are essential to the SA economy Private credit is emerging as: economy but struggle to • Expected to generate 90% of new jobs • A rapidly growing segment of the and contribute 60% - 80%
Slide 19: ACOF's Solution
ACOF’s SOLUTION ACOF has designed a unique integrated solution to solve the complex funding problem TAILORED TECHNOLOGY EXPERIENCED EXPERIENCED MEDIA LEADERSHIP MEDIA TECHNOLOGY LEADERSHIP FUNDING PARTNERS PARTNERS SOLUTION Technology allows ACOF to The teams is well equipped Unique media coverage A
Slide 20: 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 Sources of return Funding situations Funding instruments • ACOF actively seeks to deliver risk-adjusted returns to our investors with a strong foc
Slide 21: ACOF Capital Structure
THE ALTVEST CREDIT OPPORTUNITIES FUND CAPITAL STRUCTURE DMTN PROGRAMME ACOF will make use of 4 capital inputs: • Unlisted Ordinary Equity • Listed Preferred Ordinary Equity • Listed Debt Notes • Grant Funding | 21
Slide 22: 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 23: Forecasted IRR to Investors ~26% - 28% Over 7 Year Horizon
FORECASTED IRR TO INVESTORS IS ~ 26% - 28% OVER A 7 YEAR HORIZION 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 Initial Valuation R 220 000 000,00 Fund Manager valuatio
Slide 24: 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 R4 500 R140 Fund Manager FY1 R295.00 - - - R250.00 R45.00 Costs FY2 R572
Slide 25: 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 IRR Matrix the upfront fees on Working Capital. As working capital loans Upfront fee on 7% 6% 5% 4% 3% represent the largest portion of the book (50
Slide 26: 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 27: 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 28: 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 RISK AUDIT EXECUTIVE Committees COMMITTEE COMMITTEE COMMITTEE • Audit Committee • Social and Ethics • Investmen
Slide 29: Annexures
ANNEXURES 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital credit opportunities fund
Slide 30: 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 31: Overview of ACOF Lending Process
OVERVIEW OF ACOF LENDING PROCESS 1. Quote process : Applicant obtains a quote on the 6. The full loan pack is presented to the ACOF lending platform on an estimated “pre-approval” amount investment committee 2. Application process : Applicant completes formal 7. Approval / Decline is communicated to
Slide 32: 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 • Altvest Credit Opportunities Fund receives an in- combination of data analytics, credit b
Slide 33: 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 CRED IT DSC SCOR The tri-factor credit moderation process establishes a cre
Slide 34: 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 35: 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 36: Annexures
ANNEXURES 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital credit opportunities fund
Slide 37: ACOF 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 … and ACOF is proud to partner to expand our impact government to support SMEs with funding solutions… drivers Our focus is on providing affordable funding s
Slide 38: ACOF with Goldman Sachs Offers Free Mentorship and Educational Resources
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 39: Annexures
ANNEXURES 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital credit opportunities fund
Slide 40: Meet the Team - ACOF Execution Team
MEET THE TEAM ACOF EXECUTION TEAM WARREN WHEATLEY CHRIZELLE VAN DER COLFF • 20+ years of experience across Asset Management, Private Equity, Banking and Institutional Capital • 20+ years of experience in Banking, Operations, Marketing and Business Optimization Markets • Advanced Diploma in Wealth Ma
Slide 41: 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 42: ACOF Execution Team
ACOF EXECUTION TEAM TAKURA MUDIMU NALEDI MOLOI – Update? • [TEXT] • ~5 years of experience in Investment Analysis and Equity Research • Bachelor of Commerce Economics, Econometrics and Investment Management PRIOR EXPERIENCE • QYF Graduate Trainee (Data Science) • Semi-finalist Old Mutual Budget Spee
Slide 43: ACOF Investment Committee
ACOF INVESTMENT COMMITTEE The Altvest Credit Opportunities Fund Board of Directors brings an exceptional level of experience, diversity, track record and energy. CHRIZELLE EWA WARREN SNOWY AKSHAY TATUM LAURA VAN DER HARCOURT- WHEATLEY MASAKELE KARAN KESHWAR DEERING COLFF WOOD • 20+ years of experien
Slide 44: 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 45: 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 Over 200 years of combined experience | 45
Slide 46: Annexures
ANNEXURES 1. Additional Information 2. Loan Process & Platform 3. Collaborations & Partnerships 4. Team 5. Altvest Capital credit opportunities fund
Slide 47: Who Altvest Is
WHO ALTVEST IS A PLATFORM THAT ENABLES INVESTORS ENTREPRENEURS Cost effective mechanism to invest in and gain exposure to Raise capital from retail & alternative assets institutional investors Support entrepreneurs by Raise equity or debt from participating in their capital capital markets raising E
Slide 48: 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 49: Altvest Has Reached Several Milestones So Far
…AND ALTVEST HAS REACHED SEVERAL MILESTONES SO FAR May 2023 Altvest publish first annual financial statements Altvest win Environmental Mar 2023 Finance's Launch of Altvest Sustainable Securities Platform Investment Awards Aug 2023 Apr 2022 Sep 2022 and bookbuild 2023 : The ACOF Dec 2023 Mar 2021 Fu
Slide 50: 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 Bambanani is a unique family-centric ACOF offers tailored funding financing Villa on the banks of the Sabie River restaurant in Melville
Slide 51: Our Value Add Is Focused on Businesses, Investors and Society
OUR VALUE ADD IS FOCUSED ON BUSINESSES, INVESTORS AND BROADER SOCIETY FOR FOR FOR BUSINESSES INVESTORS SOCIETY Provide capital solutions aimed at Access to asset classes that are diversified, Democratise access to private equity by addressing the lack of fit-for-purpose difficult to access, non-corr
Slide 52: 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 • Altvest aims to provide a publicly accessible platform connecting capital to ideas INACCESSIBLE TO RETAIL INVESTORS • The platform itself
Slide 53: 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 PROTECTION OF UNDERVALUED ATTRACTIVE VALUE INVESTING STAKEHOLDER PARTNERSHIP CAPITAL BUSINESSES BUSINESS MODEL INTERESTS Our inve
Slide 54: Opportunities Sourced via 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 We have created a multi-platform, multi-channel investment sourcing model that combines tra
Slide 55: Committed to Shared Value Between Excluded Communities and Capital Markets
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 Our philosophy drives our investments process, we believe growth is them the
Slide 56: Operating Model Keeps Us Close to Investment Companies
AND OUR OPERATING MODEL ENSURES THAT WE REMAIN CLOSE TO INVESTMENT COMPANIES, BOTH DURING AND AFTER LISTING SHAREHOLDER EXECUTIVE MANAGEMENT PERFORMANCE CORPORATE ENGAGEMENT SUPPORT MANAGEMMENT & CAPITAL GOVERNANCE ALLOCATION We foster collaborative relationships with Engage with CEO / CFO / Board r
Slide 57: Altvest Has 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 Origination investments represent desired, yet unattainable, asset classes Investment scorecard explicitly includes Evaluation and execution environmen
Slide 58: 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 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. STAFFORD MASIE WARREN WHEATLEY FAY MUKADDAM HENK BARNHOORN • Stafford Masie has over 20+ y
Slide 60: 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 • GG founde
Slide 61: Media Reach for Altvest & ACOF
MEDIA REACH FOR THE ALTVEST & ACOF Leveraging media to attract investors and borrowers, raise brand awareness and provide access to market opportunities 5.2M Twitter Twitter is leveraged to share insights relating to potential Impressions assets to be listed on Altvest and provide thought leadership
Slide 62: Confidentiality Disclaimer
CONFIDENTIALITY DISCLAIMER This confidential document has been prepared by Altvest Credit Opportunities Certain statements in this document (other than the statements of Fund Proprietary Limited (“Altvest Credit”).This document has been prepared for historical fact) may contain forward-looking state
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