Small Business, Big Future: How AltVest Plans To Redefine South African Entrepreneurship

7 Min Read | 900 Words

In the ever-changing world of finance, staying ahead requires innovation and a fresh approach. AltVest, a South African-based private equity firm, is doing just that by focusing on alternative investments and sustainable business practices. Recently, I had the privilege of attending their JSE listing event, where I gained valuable insights into their unique values and how they’re shaping the future of private equity. From empowering small businesses to prioritizing Environmental, Social, and Governance (ESG) principles, AltVest stands out as a forward-thinking player in the industry.

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Altvest’s Intial Public Offering On The JSE AltX

AltVest is a South African-based private equity firm that focuses on alternative investment opportunities. They specialize in creating accessible investment options in sectors like private equity, infrastructure, technology, and renewable energy. AltVest's mission is to offer diversified portfolios to investors while maintaining a strong focus on sustainability and environmental, social, and governance (ESG) principles. Their approach combines the pursuit of financial returns with making a positive societal impact, aiming to bridge the gap between traditional investing and alternative markets that offer high-growth potential.

I was super fortunate to attend their JSE AltX listing party and had the chance to gain hands-on insight on their values as a company.

Fast And Flexible Is The Future

In a rapidly evolving financial landscape, they recognize that agility and momentum is key to staying competitive. AltVest’s commitment to providing tailored, quick-to-execute financing solutions allows them to support growing businesses that larger institutions often overlook. Their flexible funding options and streamlined processes empower smaller companies to scale rapidly while still aligning with sustainable, long-term goals. By prioritizing speed and adaptability, AltVest positions itself as a forward-thinking player in the industry, meeting the needs of modern investors and businesses alike.

Losing Their Clients Is Their Business

Though this may seem counterintuitive to traditional growth strategies, the chair of the investment committee emphasized that their success lies in losing clients to bigger institutions. If that happens, they've done their job well.

Their business model not only focuses on alternative assets but also on being an alternative player in the industry. They take pride in supporting small South African businesses—a segment that Capitec has recently targeted as well.

Their core belief is to fund and support these smaller companies until they can access more affordable financing from larger institutions that would have previously overlooked them. A key feature of their approach is that they charge no cancellation fees for debt funding; they simply require clients to settle the balance, making it easier for businesses to transition to more favorable financing options from bigger players. This ultimately places major faith in their clients, creating an environment of safe vulnerability, allowing them to build solid working relationships for future endeavors and often times resulting in clients remaining with them despite cheaper financing options being available.

The Importance Of ESG

Another core value evident in the company’s culture, reflected by its employees, is the emphasis on Environmental, Social, and Governance (ESG) principles. The key argument they present challenges the common belief among investors and finance professionals that achieving ESG goals requires sacrificing returns in other areas of the business. In their view, this couldn't be further from the truth.

They strongly believe that ESG actions not only align with ethical standards but also drive significant returns and enhance long-term value. This perspective aligns with the growing emphasis on ESG within the SAICA syllabus and the broader accounting profession, highlighting its importance in shaping sustainable business practices without compromising profitability.

Roundup

AltVest’s business model challenges traditional private equity and business funding norms by placing trust in their clients and focusing on long-term societal impact alongside financial growth. Their commitment to ESG and fostering small business growth highlights their belief that ethical and sustainable actions drive returns, rather than compromise them. In a fast-paced financial landscape, AltVest proves that being fast and flexible isn't just an option—it's the future. By helping smaller businesses grow and thrive until they’re ready for larger institutions, AltVest is paving the way for a more inclusive and resilient financial sector.

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