HELP SETTING UP AN INVESTMENT FUND FOR A FAMILY OFFICE
A prominent family office approached Bryanston to support the set-up of a mining fund. They wanted to know into what they should invest. The office was overwhelmed by differing expert opinions.
Bryanston’s Director for African operations explains that most funds would have dived into assessing mining assets. We started by asking “why”. The team questioned: “Why should we invest in mining in Africa? At what stage of the lifecycle? In what commodity?” We looked into the demand side of the commodity market, before hunting for assets.
Bryanston explored the growing high-tech/clean-tech applications most likely to increase demand for these niche commodities.
A clearer picture emerged from the demand analysis. Assessing which commodities were attractive culminated in a Market attractiveness vs. Strategic fit matrix for the investor. Niche commodities such as rare earths, manganese zinc, vanadium, and cobalt were prioritized.
Bryanston’s top concern was getting the fund’s focus and strategy right. Following this, the next step was to set up governance, the operating model and develop a toolkit and processes to handle the large volume of origination needed to find exceptional investments.
Bryanston’s leadership says: “As a rule of thumb, I want to make sure we always reject ~95-98% of the deals we look at.”
There is no such thing as superior access to good deals or superior screening skills. Setting up the tools and processes to handle this large volume of screening is critical for success.
After answering WHY, it was much easier to answer WHAT. Having understood WHY they were investing, Bryanston assisted the family office in defining their investment focus.
Bryanston built the fund from scratch, developing the strategy and filling the investment pipeline with over 50 opportunities.
Bryanston, together with the client, narrowed down the vision and created a successful venture capital fund with a full deal pipeline.