WHO WE ARE
Zrosk IM is an African investment management company with a core focus on alternative assets. We are purposeful about developing products that are the right fit for the markets we operate in ensuring we have a thorough understanding of the risk around it.
We use our proprietary capital to de-risk; understand and unlock the niches we want to play in before opening it up to external partnerships. We are always experimenting but only offer strategies/products in areas where we believe we have strong confidence in achieving excess risk-adjusted returns.
Our core focus as a company is ALIGNMENT. We believe “magic” happens when we can align interests across multiple stakeholders – our investors, our employees, and our founders/sponsors.
We always aim to have sufficient skin in the game. We are the first investors in any sub-asset class we want to develop and aim to be the largest investor when we aggregate capital.
Our return is principally from 2 sources – return on our own capital (invested alongside our clients) and the fees we charge our external partners when we generate a return for them. Any other associated fees are to cover the cost of providing that service. We see this as the ultimate alignment of interest.
Frequently Asked Questions
Zrosk was founded by investment professionals who believe that excess risk adjusted return can be obtained from underserved and underrepresented markets.
It depends on the specifics of the situation. We can play across the capital structure given our different product capabilities. We can offer straight equity, straight debt, a mixture of both debt and equity or hybrids instruments.
We want to be the most valuable early-stage investor on a company’s cap table so we tend to want to hold a significant stake in the businesses that we support. This goes back to our ethos around alignment. We want to be aligned with our founders to ensure that their successes are also our success. We aim to take between 5-15% of the early-stage companies we invest in.
Our ticket size is dependent on the stage of the individual business we back. Given we aim to take significant stakes in company’s it means the latter the company development cycle the larger our average ticket size. For our early stage investing we have invested between $100,000 – $4,000,000. Our private credit business on the other hand average ticket size is around $200,000.
We typically invest between pre-seed and Series A. We like to see sufficient evidence of initial traction and product market fit. We typically wouldn’t fund ideas of paper. For our pre-seed investment we have a preference for second time founders or founders who have operated at senior level within the industry they intend to operate.
This is stage dependent. We typically would follow and, in some cases, increase our stakes in the very early-stage investment we make (pre-seed and seed). Founders can be assured they have a committed early-stage investor.
Our fastest investment was made within 24 hours whilst our slowest was 6 months. The complexity of the transaction and the investment stage of the companies are usually a strong determinate of investment processing time.
This is product specific. For Early-Stage Equity it is 7-10 years. For private credit it is 3-24 months and for our strategic portfolio we do not have an investment horizon – we intend to hold the companies forever.
Yes. Our strategy is to test out a variety of product within the alternative investment space and the confidence we garner from that experimentation will lead to development of fully fledge stand alone verticals.