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Capitalworks buys stake in IQ Business


30 Nov 2016 |

Capitalworks buys stake in IQ Business

Capitalworks acquires a significant interest in leading independent management consulting firm.

South African based independent alternative asset management firm, Capitalworks has acquired a significant interest in IQ Business, the leading independent management consulting firm in South Africa. This transaction has been made alongside Tiso Investment Holdings, existing shareholders (IQ Group Holdings) and the executive partners of IQ Business.

“We have achieved significant growth over the years through the support of our existing shareholder base” said Adam Craker, CEO IQ Business. “It is time to enter a new phase of growth by fast tracking the expansion of our scope of services and the industries we serve, and we are delighted to partner with Capitalworks and Tiso in this new chapter in the history of our firm”.

Darshan Daya, principal at Capitalworks said “Capitalworks first approached IQ Business in 2012. We have monitored the success and growth of IQ Business over the past 4 years and profiled their activities. We believe the leadership team of IQ Business has created a solid foundation for further growth and expansion with the support of an active private equity investor”.

Daya explained, “Capitalworks typically invests in companies with leading positions in their respective industry segments or niches, often with an existing strong brand or market share – like IQ Business. We adopt a ‘hands-on’ approach, creating value directly through our partnership with management and our interventions with the company to build scale, improve competitive positioning and to drive growth and profitability.”

Commenting on the transaction, co founder of Tiso Investment Holdings, Mr Nkululeko Sowazi said, “Tiso has a long and successful track record of co-investing alongside management and like-minded investors in companies that have solid growth prospects and Pan African ambitions. We are therefore excited about our investment in IQ Business and look forward to a mutually beneficial partnership into the future.”

Since its establishment in 1998, IQ Business has grown to become a trusted partner to leading corporates in solving their business challenges involving people, processes and technology. Capitalworks believes that IQ Business’ pioneering Consulting-Research-Contracting service delivery model, which ensures clients remain in control of how they engage consultants, backed by subject matter experts in many disciplines will continue to underpin its growth.

“Over our 18 years in business, our reputation has been established and our commitment to deliver meaningful client value has been demonstrated” said Craker. “We are uniquely positioned as an alternate to international consulting firms through our deep local knowledge and expertise on the continent – it is time for Africa to show that its own ‘home grown’ consulting capability can indeed compete on equal footing with international competitors, and in many areas provide superior expertise”.

Since 2011, IQ Business has been structured as a partnership-based professional services firm, with Partners also becoming direct shareholders. The team of Partners has expanded over time, with talent promoted internally and new leaders being attracted to the firm.

Craker said, “Our growth plans are dependent on retaining and attracting leadership talent at Partner level. With the introduction of Capitalworks and Tiso as strategic partners, we believe our ability to invest for growth together with the opportunities that the transaction has provided for the leadership team to have a deeper vested interest in the success of our firm, will be a significant differentiator in the war for talent, which our clients will be the ultimate beneficiaries of”.

With a team of over 550 ‘IQers’, IQ Business serves clients in South Africa and across sub-Saharan Africa, with particular emphasis on financial services, consumer and retail, and the telecommunication industries. Craker says “It is vital that we invest in our team to develop new skills and expertise to provide value to our clients. As an example, in the past 5 years, we have grown to become the largest Agile consulting organisation in South Africa. This positions us at the forefront of change in assisting organisations to drive innovation to achieve rapid results”.

IQ Business, Capitalworks and Tiso explained that their emphasis will be to continue to create value for IQ Business’ clients by expanding their services and industry coverage through organic growth and targeted acquisitions of complementary businesses.