Fund Management Approach

Umbono seeks to provide acquisition and development capital funding for private or delisting energy and natural resources investments in Southern Africa that combine the following features:

1. the greatest long term commodity price strength potential; and
2. the greatest value uplift potential in terms of entry price and uplift potential as they are moved along the development value chain; and
3. a tangible universe of exit counter parties seeking Southern African assets

Umbono’s investment approach starts with a top-down macro level review to identify commodities and related assets that hold the greatest promise of long term price strength and growth potential.

In parallel Umbono conducts a pro-active bottom-up process aimed at identifying and acquiring investments in individual target projects:

1. Investment targeting
   Search for investments within strategy sourcing from listed markets, grassroots “off-market” relationships and primary geological targeting.
   
   
2. Screening and analysis
   Combining the group’s investment banking experience with the skills of the highly qualified technical team each project is reviewed for technical feasibility and financial potential.
   
   
3. Investment structuring and contract negotiation
   By leveraging in-house legal and financial skills Umbono is able expedite contract structuring and negotiation to facilitate a speedy and professional implementation.
   
   
4. Investment committee approval
   As a final step in the acquisition process each investment is presented to the investment committee for final approval.

Following the acquisition of a qualifying investment a member of the investment team is assigned responsibility for ongoing management (control, value add and ongoing assessment of exit possibilities). Each investment manager has at their disposal the skills of the financial and legal support team where needed on individual projects, and the chief investment officer provides oversight of the group's portfolio as a whole.