About SAEF
The Equity Contribution Bridge Model - Unlocking SME funding through strategic equity bridging
Who We Are
The South African Equity Fund (SAEF) is a specialized investment fund that addresses a critical funding gap in South Africa's SME sector. We provide the missing equity contribution that viable SMEs need to secure bank and DFI funding.
Established in 2020, SAEF operates on the Equity Contribution Bridge Model. Banks and DFIs typically require SMEs to contribute 10%-51%+ equity towards project costs before approving funding. Many commercially viable SMEs fail at this first hurdle, despite having credible projects, contracts, or purchase orders.
SAEF bridges this gap by providing strategic equity investments that unlock the balance of funding from banks or DFIs. We focus on high-impact sectors where DFIs are active: Manufacturing & Agro-processing, Renewable Energy & Green Tech, ICT & Smart Infrastructure, Healthcare, Transport & Logistics, and Tourism & Hospitality.
Key Facts
Our Vision
To be the leading equity bridge fund in South Africa, converting "funding declined – insufficient equity" into "funding approved – project fully capitalised" for viable SMEs across high-impact sectors.
Our Mission
To provide strategic equity investments that bridge the funding gap for viable SMEs, enabling them to secure bank and DFI financing while creating sustainable jobs and economic impact.
Our Approach
We combine rigorous investment analysis with hands-on operational support, working alongside management teams to unlock growth potential and create long-term value.
Our Values
The principles that guide every investment decision and partnership we make
Integrity
We operate with the highest ethical standards and transparency in all our dealings.
Impact
Every investment must contribute to South Africa's economic transformation and job creation.
Innovation
We support businesses that bring innovative solutions to market challenges.
Partnership
We believe in building long-term partnerships with our portfolio companies.
Excellence
We strive for excellence in investment decisions and portfolio support.
Investment Philosophy
Our Investment Strategy
We believe that South Africa's economic growth depends on the success of its SME sector. Our investment strategy is built around identifying and supporting businesses that can scale significantly while creating meaningful employment opportunities.
We focus on companies with proven business models, strong management teams, and clear paths to profitability. Our sweet spot is businesses generating between R10 million and R100 million in annual revenue, seeking growth capital to expand operations, enter new markets, or develop new products.
Value-Add Approach
Strategic Guidance
Board representation and strategic planning support
Operational Excellence
Process optimization and performance management
Network Access
Connections to customers, suppliers, and talent
Follow-on Funding
Additional capital for continued growth
Our Team
Experienced professionals with deep expertise in investing, operations, and sector knowledge
Dr. Thabo Mthembu
Managing Partner
Former CEO of a leading investment bank with 20+ years in private equity.
Sarah Ndaba
Investment Director
MBA from Wharton, specializing in SME growth and sector analysis.
Michael Botha
Partner - Operations
Former McKinsey consultant with expertise in operational excellence.
Nomsa Khumalo
ESG & Impact Director
Leading expert in sustainable investing and social impact measurement.
Governance Model
Investment Committee
All investment decisions are made by our Investment Committee, comprising senior partners and independent advisors with relevant sector expertise.
- • Weekly investment review meetings
- • Unanimous approval required for investments >R25M
- • Quarterly portfolio reviews
Advisory Board
Our Advisory Board includes industry leaders, former CEOs, and sector specialists who provide strategic guidance and sector insights.
- • Quarterly strategic reviews
- • Sector-specific advisory panels
- • Exit strategy oversight
ESG Oversight
We maintain strict environmental, social, and governance standards across all portfolio companies and fund operations.
- • Annual ESG assessments
- • Impact measurement and reporting
- • Compliance monitoring