Long-term shareholders in investment holding company Sabvest Capital (Sabcap), managed by businessman and entrepreneur Chris Seabrooke, will be pleased with the performance metrics of the R6.5bn fund. Over the past 12 months, Sabcap, which holds mostly unlisted assets, is ahead 45%, over three years 78% and over five years 216%.
Sabcap has long been a favourite stock of IM. We view it as an ideal vehicle for private client participation in a well-managed asset class. Hooking onto Seabrooke’s coattails has been a solid investment.
When IM last commented on Sabcap (in September 2025) much of the heavy lifting at interims was achieved by Apex Partners*, the industrial conglomerate managed and run by Charles Pettit, in which Sabcap owns a 40.6% stake. At the half, Apex saw a 37% uplift in value to R834m, making Apex the third-largest investment within Sabcap. IM foresaw further uplift in Sabcap’s NAV at year-end as Apex had acquired mining services group DRA Global, bolstering its prospects.
IM was also bullish on prospects. Some of the larger underlying assets had underperformed due to rand strength and restructuring, and IM believed this would bring NAV uplift into 2026. In that article IM maintained a buy on Sabcap with a target price of R140 (up 27%).
That faith was well rewarded. In February 2026 the counter soared to a record high of R162.50, albeit in thin volumes.
Recently released year-end results to December 2025 saw Sabcap accelerate the NAV growth from the pleasing set released at interims. Year-on-year NAV rose 21.9% to R161.05. There were no changes in the period to the ebitda value multiples. Interestingly, the 20-year compound NAV growth in Sabcap has been an impressive 20.2% with dividends reinvested.
In February 2026 the counter soared to a record high of R162.50
The main kick to year-end 2025 results was again Apex. Year on year, including the DRA deal, Sabcap’s stake increased 198% to R1.8bn, making the stock the largest constituent of the portfolio at 29% of NAV.
There has been increased portfolio concentration, with the top four assets — Apex, SA Bias, DNI-4PL and ITL — now comprising 76% by value, or R4.74bn, of the investment fund. This raises an eyebrow here at IM — but Seabrooke has his finger on the pulse and has been intent on exiting smaller investments to focus on larger assets that move the needle.
Aside from Apex, the portfolio was a mixed bag. SA Bias, the second-largest asset worth R1.3bn, saw a modest 2% rise in value as soft trading in key markets and some impact from the US trade tariffs hit. The company is, however, stuffed with cash.
Sabcap’s third-largest asset, technology and payments solutions business DNI-4PL, has been performing indifferently since 2022. The investment’s R918m valuation slipped 7% on the year as softer demand in telecoms transactional services hit. DNI, though, remains highly cash-generative and pays solid dividends.
Global intelligent labelling solutions business ITL saw a 2% slip in value to R707m because of the strong rand and US tariffs on many emerging markets. However, the benefit of past restructuring has become evident, with new customer wins and improved prospects ahead.
Many of the smaller assets, comprising R307m in value or 5% of the total portfolio, had a tough period. Liquor business Halewood International had a 47% slide in value, London-listed internet security business Corero Network fell 54%, pet food business Valemount was down 32% and manufacturing business Amicus plunged 50%. Management remained optimistic on prospects for Valemount and Amicus, though IM reckons some of Sabcap’s assets have question marks over their future.
The Sabcap share price hit R162.50 ahead of the US-Israel attack on Iran. At the time of writing it is trading at R140 and a narrower than usual discount of 13%. Sabcap has held remarkably steady since the start of the war.
IM believes there is further upside in NAV towards R175 a share to end-June 2026 and R190 a share towards the end of the financial year. But IM is also cognisant of the turbulence in global trade and consumer sentiment due to the Iran war.
Despite the year-to-date gains of 10.6%, IM maintains its long-standing buy recommendation on Sabcap.
*The writer holds shares in Sabcap
*Apex Partners is the majority shareholder in The Financial Mail Group
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