British International Investment

Summit Private Equity Fund

South AfricaSouthern AfricaConsumer - EducationConsumer - HealthFinancial services

Summit will direct investments to small and medium-sized enterprises (SMEs) in rural and peri-urban areas across South Africa, focusing on the education, healthcare, and financial services sectors. The inaugural fund aims to improve accessibility, affordability and inclusion at company and end-customer levels, for previously disadvantaged groups and hard-to-reach communities.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

At least two thirds of the fund's investments are expected to reach low-income populations as well as previously disadvantaged groups. We will bring significant value-add in supporting this first-time team in institutionalising the platform and enhancing impact at the portfolio level.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact
  • Enhanced economic opportunities and reduced inequalities through direct job creation, business ownership & management (SDGs 8.5 & 10.2).
  • Improved quality of life through access to financial services, quality/affordable education, and healthcare (SDGs 1.4, 3,8 & 4.3).

How?

How?

Through investing and providing transformational value-add to 11-15 SMEs in the health, education, and financial sectors, Summit will grow and transform these businesses, increasing employment, gender/race inclusion and access to essential goods/services.

Who?

Stakeholder Geography Characteristics
Employees, suppliers

South Africa (at least 50% of the portfolio outside main metropolitan areas - rural or peri-urban), up to 15% in the other CMA countries (Eswatini, Namibia, and Lesotho)

Primarily low-income populations i.e. bottom 40% and previously disadvantaged individuals (PDIs) defined as a South African citizen who is (i) a “black person” (ii) a female (iii) a person who has a disability.
Consumers

South Africa (at least 50% of the portfolio outside main metropolitan areas - rural or peri-urban), up to 15% in the other CMA countries (Eswatini, Namibia, and Lesotho)

Primarily low-income populations i.e. bottom 40% and previously disadvantaged individuals (PDIs) defined as a South African citizen who is (i) a “black person” (ii) a female (iii) a person who has a disability

How much?

Scale Depth/Duration

Aims to create 2k permanent jobs for mostly PDIs, and each portfolio company will have specific transformational targets

Target: healthcare – 200 new hospital beds in peri-urban/rural areas, 1000 patients reached; education – 10k learners reached

The impact on economic opportunities is expected to be deeper particularly in rural areas and townships where there are higher levels of poverty, unemployment rates, and lower access to essential services.

Contribution/additionality

Contribution/additionality
  • Financial additionality: The fund is on track to surpass target fundraise, making our financial contribution limited, although Summit has noted that having BII s support has helped add credibility to the fund.
  • Value additionality: Further institutionalising of platform and enhancement of impact across various workstreams

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.

N/A

Risk

Execution Risk
  • This pertains to this first-time team’s ability to successfully originate and execute deals in the fund’s priority sectors and deliver the impact described. This is correlated to commercial risks. Mitigation: As a final close investor, we have observed execution to date (which is on track and in line with the fund strategy). Close monitoring and tracking their progress will be important.

Understanding our impact information (PDF)

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We are working closely with the fund manager to improve its existing ESMS, including delivering an action plan.

Understanding our approach to environmental and social risk (PDF)

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at enquiries@bii.co.uk

  • Key facts
    Last updated

    When the last quarterly update of the website database occurred.
    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.
    :
    D4728
    Status

    The current status of the investment (green flag for active and red flag for exited).
    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
    :
    Southern Africa
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Consumer - Education, Consumer - Health, Financial services

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.
    Investment type :
    Fund
    Start date :
    July 2021
    Amount :
    $15.43m
    Currency of investment :
    ZAR
    Fund Manager:
    Summit PE Investment Managers (Pty) Limited
    Domicile

    The company or investment fund’s place of incorporation.
    :
    South Africa
    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.
    :
    Fully qualified

    Download as PDF

    Click here to read our data guidance

Investments made by this fund into companies:

For further information about these companies, visit https://summitafrica.com/summit-funds/

Investment name Country Region Sector Start date Status
Apex Surgi-Centre Proprietary Limited South Africa Southern Africa Consumer - Health November 2021 Active
Custom Capital Finance (“CCF”) South Africa Southern Africa Financial services November 2022 Active
Efficient Group (Pty) Ltd South Africa Southern Africa Financial services December 2020 Active
Life Path Health Group South Africa Southern Africa Consumer - Health October 2022 Active
Lifecheq Pty. Ltd South Africa Southern Africa Financial services June 2024 Active
Lifecheq Pty. Ltd South Africa Southern Africa Financial services June 2024 Active
Nelspruit Surgiclinic South Africa Southern Africa Consumer - Health June 2023 Active
NewBridge Group Proprietary Limited South Africa Southern Africa Consumer - Education April 2022 Active

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