Capitalworks, a South African independent alternative asset management firm, has acquired a significant interest in IQ Business, an 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.

According to Darshan Daya, Principal at Capitalworks, the firm 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, he said.

Daya explained that 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,” he said. 

Commenting on the transaction, Nkululeko Sowazi, Co-founder of Tiso Investment Holdings, 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,” he said.

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. 

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.

With a team of over 550 people, 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.

IQ Business, Capitalworks and Tiso said 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.

Adam Craker, CEO IQ Business, said: “We have achieved significant growth over the years through the support of our existing shareholder base. 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.”

“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,” he said.