The private equity firm has made a name for itself by making equity investments in South African growth-stage businesses, then having members of its team join its portfolio companies to provide operational support. Its investment in local electronics manufacturer Barracuda marks the start of a new strategy wherein Secha puts a new CEO in place to guide the next phase of growth.
Barracuda provides contract manufacturing of functional circuit boards for the automotive, utility, agriculture and defense industries. It is now expanding into the aerospace field. With Barracuda’s new funding round, Aengus Stanley of Shade Tree Capital, a co-investor in the deal, will join the company as CEO. Secha’s Seshan Chettiar will also join Barracuda’s management team.
“The next decade in South Africa won’t be defined by capital alone; it will be defined by execution capital – money that arrives with an embedded chief executive operator-investor, an operating playbook, and a deep focus on delivery,” said Secha’s Brendan Mullen.
Barracuda’s founders Rob Steltman and Ryan Webb have committed to supporting the next several years of Barracuda’s growth.
Human capital
Secha Capital was launched in 2017 by two former Bain & Co. consultants to provide both capital and management support for consumer goods, agribusinesses and other small and growing companies that support South Africa’s core economic sectors.
“Building human capital and management capabilities is a huge need” for small businesses, Mullen told ImpactAlpha at the time.
Its firm is investing out of its second fund, whose portfolio includes lithium battery manufacturer IG3N;FarmTrace which provides farm management software; and hydroponics vegetables producer and supplier Cultura Fresh.
