FluxCap Financial Services — Investor Returns & Exit Strategy

The investor returns and exit strategy - the MOIC, the implied IRR, the valuation benchmarking and the exit pathways underpinning FluxCap.

FluxCap Financial Services Business PlanSection 23 › Investor Returns & Exit Strategy

Section 23 · Business Plan

Investor Returns & Exit Strategy

The investor returns and exit strategy – the MOIC, the implied IRR, the valuation benchmarking and the exit pathways underpinning FluxCap.

Equity returns

Metric Value Basis
Exit enterprise value R7 020m 6.5x FY2031 EBITDA of R1 080m
Less: net debt at exit R4 780m Total facilities R4,860m less cash R80m
Implied equity value R2 240m
Equity invested (Tranche 1) R720m Single tranche at close
Money multiple (MOIC) 3.11x Gross, pre-fees, no interim distributions
Implied IRR 25.5% Five-year hold, single exit event

Valuation benchmarking

The 6.5x EV/EBITDA exit assumption is triangulated against listed
South African credit and fintech-adjacent comparables and precedent
transactions. Listed unsecured and specialist lenders in SA have
historically traded at 4–7x EBITDA equivalents (with banks quoted on P/E
and price-to-book), while growth fintech platforms with demonstrated
profitability have transacted at meaningful premiums — TymeBank’s 2024
capital raise at a US$1.5bn valuation and international digital-lender
acquisitions illustrate the upper bound. FluxCap’s assumed 6.5x sits in
the middle of the credible range: above a pure lending-book multiple,
reflecting the fee, subscription and data-asset mix, but well below
venture-market fintech pricing.

Reference point Indicative multiple Read-across to FluxCap
SA specialist lenders (listed, mature) 4–6x EBITDA equivalent Floor: value as a pure book
SA retail banks (Capitec premium) P/B 4–7x for high-ROE franchises ROE trajectory (32% FY2031) supports premium rating
African fintech M&A (profitable platforms) 6–9x EBITDA Ecosystem + data asset command a premium over book value
Assumed exit 6.5x FY2031 EBITDA Mid-range; sensitivity to 5.0x and 8.0x disclosed below

Exit pathways

  • Strategic bank acquisition: the most probable
    route — Capitec, a tier-1 bank or Tyme Group acquiring the customer
    base, FluxScore data asset and embedded distribution; precedent
    transactions in SA fintech support 5–8x EBITDA for profitable, growing
    platforms.
  • JSE fintech listing: viable at FY2031 scale
    (R3.1bn revenue, R383m NPAT) but dependent on listing-window
    conditions.
  • Pan-African fintech merger: consolidation with a
    regional platform seeking SA credit capability; MTN fintech and similar
    ecosystems are logical counterparts.
  • Private equity secondary: financial-sponsor
    appetite for cash-generative lending platforms provides a floor route at
    more conservative multiples.
EXIT-MULTIPLE DEPENDENCY

The 25.5% IRR is meaningfully dependent on the terminal multiple and
the final projection year. At 5.0x FY2031 EBITDA the equity value falls
to R620m — 0.86x MOIC, a capital loss despite five years of plan
delivery, because terminal net debt of R4.78bn absorbs the first R4.78bn
of enterprise value. At 8.0x, MOIC rises to 5.36x. The leveraged
structure makes equity returns a geared bet on both EBITDA delivery and
exit conditions. A margin of safety exists only if FY2031 EBITDA lands
above roughly R735m at a 6.5x multiple — a 32% cushion below plan, which
is thinner than the scenario analysis’s downside case. Investors should
size positions accordingly.

Interim distributions and secondary liquidity

No dividends are assumed during the plan: every rand of retained
earnings is junior capital supporting warehouse advance rates, and
distributing it would directly increase the external funding
requirement. Interim equity liquidity is instead expected through a
priced Series B round in FY2029 (at which point three years of audited
vintages support a substantial markup) offering early investors partial
secondary opportunities, and through the warehouse structure itself,
which returns excess spread to the Company monthly once
overcollateralisation tests are met — cash that accelerates the equity
story without leaving the balance sheet.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of FluxCap Financial Services (Pty) Ltd.