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RMB has a unique Principal Investments (PI) funding solution. Principal Investment spans across the entire RMB’s Investment Banking Division. As an investment bank, we only deal with the large corporate market, and can only assess funding requests for more than R75 million.
It equips RMB with the ability to structure, advise and fund bespoke transactions in the mezzanine or shareholder layers of the capital structure. We are able to deploy this solution in all of the major asset classes, typically by providing quasi-debt or preferred equity funding at either company or shareholder level.
We are not limited by asset class and over the past decade have invested in a range of assets, including the corporate, real estate, renewable energy, infrastructure, BEE, mining and telecoms sectors.
One of the main features of our PI solution is the flexibility that it provides to companies and investors. RMB adopts a partnership approach to offer:
- Patient funding that is covenant-light, typically limited-recourse and could allow for roll-up with no cash servicing requirements (5 to 7-year tenors). This gives management and shareholders the breathing room to focus on core business activities and aligns the repayment of the facility with corporate action or an exit
- All-in pricing lower than outright equity
- A long-term view on the performance of the business or asset
- Seamless integration with senior debt facilities
We would consider our PI solution where there is a need to fund:
- Liquidity for distributions to shareholders
- Equity bridges with a view to an IPO or other liquidity events
- Monetising of stakes without having to sell
- Following of rights issues or capital calls
- Growth initiatives where senior debt capacity has been depleted
- BEE and management transactions
- Project finance (including greenfields and brownfields)
Our extensive offering includes:
- Corporate: This allows clients to raise funding at either company or shareholder level in any of the situations described above
- Real assets: We invest in physical assets considered long-term, cash-generative or underpinned by off-take agreements. Real estate, infrastructure and renewable energy assets are some of the asset types we consider in this category
- BEE: PI solutions are typically attractive in BEE transactions where parties require flexible e funding solutions
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Geographical reach: The Principal Investment team serves clients throughout sub-Saharan Africa