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Two and a half years ago, Thuso Incubation Partners (Thuso) was founded to discover, support, create and elevate the next generation of black-owned private market asset managers. Today we are proud to be the most scaled and impactful incubation platform in South Africa, having onboarded no less than 10 teams across a diverse range of industry disciplines.
With our first phase of funding successfully committed in “Thuso 1.0”, we have delivered on all that was promised to our investors. Now, the Thuso team is gearing up and preparing to commence its ”2.0” journey, with a very exciting pipeline of teams we commit to bringing “live”.
An authentic approach
As an independent, majority black-owned, private markets incubation specialist, our success is informed by several key factors. The most critical one is our people, led by our CEO, Olwethu Cata.
The journey thus far
In the face of a global pandemic, Thuso’s forged a path that proudly allows it to claim its rightful place, known and respected as specialists in incubation and private markets.
In accomplishing our ambitions, we attracted just under 100 engagements over our first funding phase. Of those, 60+ were formal engagements.
Distinction
We have developed our internal matrix for qualitative and quantitative scoring. This medium is a guidance tool and benchmark that acts as a “checks and balances” overlay, all of which informs our decision-making process.
We are forensic in our approach, ensuring that the self-originated and existing teams are built along the lines of sustainable partnerships.
Our Investment Committee, who we lean on extensively, is engaged regularly throughout our process and even during the latter stages of due diligence, interacting directly with prospective incubatees. This layered approach to the seasoned Thuso team all lend itself to the rigour that is required for a unique programme of this stature to be realised.
Entrepreneurial mining
The majority of Thuso’s incubatees in “1.0” are self-originated, and hence we tend to say that we are executing private equity within private equity.
Thuso needs to take time in selecting those who merit being taken to a financial commitment. The reasons for the longer-than-usual time decay are principally premised upon the fact that these are new businesses and, in most cases, new partnerships. These are made up of people who have known each other for quite some time, through the industry, but who have probably never worked together within the same office or institution.
Shared risk
The power of partnerships lies in working collectively, while dually committing, financially, to the broader investment Thuso makes in each of its incubatees investment funds.
Due diligence
This is the most critical phase for prospective incubatees.
Many interactions ensue including one or two with our investment committee – this is a unique feature within a process and programme such as this or even within the investment industry itself.
Every other programme in South Africa, and around the world, established funds, sustainable investment teams already exist. Comparatively, Thuso navigates in the realm of uncertainty, which translates into the potential risk of failure. That said, if the multitude of documents submitted to the investment committee is ratified, that risk is radically diminished.
As Thuso’s programme matures, the more that differentiation becomes apparent. We may not be singular in the eyes of stakeholders, especially capital allocators to their business, but our ability, through our networks, to bring teams into the South African asset management sector that did not exist before, makes us highly impactful in achieving the Presidencies’ goals of transforming sectors of our wonderful country. In this case, professional management, and the employers of tomorrow.
Author Overview
Carlo has nearly 20 years of experience within the incubation/direct investments and multi-manager investment industry, covering traditional and alternative investments asset classes.
Besides having founded Thuso Incubation Partners, Carlo is also an originator of several private markets incubation initiatives within the global asset management industry as well as a successful angel investor within the venture capital industry
His proudest achievement is as a mentor to several young previously disadvantaged South Africans from Cape Town’s townships, all of who he sees incredible potential in becoming future leaders in South African society.
