SP Aktif generally applies the following criteria in addition to assessing the extent to which opportunities match its business philosophy and portfolio strategy:

• The track record of the business: profitability, cash flow, balance sheet;

• Sufficiency of forward cash flows;

• Attractive growth prospects;

• Competent management who shares in the investment risk;

• A sustainable competitive advantage;

• Export performance/ potential;

• Extent of vertical integration;

• Quality of corporate governance

• Attractive entry values and good exit potential.

BLACK ECONOMIC EMPOWERMENT

SP Aktif is committed to the BEE principles and practices as embodied in the prevailing Codes on broad based black economic empowerment.

• Equity participation by historically disadvantaged persons;
• Participation by historically disadvantaged persons in the management and control of investee companies;
• Measures to improve the representativeness of investee companies’ employee base in keeping with the demographic profile of South Africa;
• Workable initiatives towards work force skills development and training;
• Application of appropriate procurement practices;
• Participation in social corporate investment.