OTJ Capital Investment Approach
Six tests, before any term sheet.
Every opportunity meets the same six criteria, whatever the sector, geography, or sleeve. The pipeline is ruthless because the holding period is long.
We say no to roughly 96% of files we open. The 4% that survive earn concentrated, conviction-weighted positions.
Cash-generative or imminently so
We underwrite to unit economics, not to narratives. Companies should clear contribution margin within 18 months of investment, or be there already.
Operator-led
We back founders and managers who have run the business for at least three years. Domain depth compounds, and capital cannot substitute for it.
Capital efficient
Burn-to-revenue ratios that reflect African unit costs, not Silicon Valley benchmarks. We are sceptical of growth that requires perpetual subsidy.
Governance ready
Audited accounts, independent board capacity, clean cap table, FATF-aligned KYC. Standards before scale.
Aligned holding period
We commit for 7–10 years on equity and 3–5 on credit. Founders who optimise for 18-month exits self-select out.
OTJ network adjacency
Preference, not requirement: businesses that benefit from the operating, talent, or distribution capacity inside OTJ Holdings.