Rowbow Investments 202 (Pty) Limited / Daly Credit Corporation

Company description

Rowbow is a holding company that holds 100% of the equity in Daly Credit Corporation (“Daly”). Daly is a contact centre with a seat capacity for greater than 500 individuals that specialises in the collection of various forms of debt on an agency basis.

daly-call-centreThe co-owners and principals of Daly were also partners in a law practice called RL Daly Inc. (“RLD”). RLD approached various credit providers with a view to being appointed to the attorney panel to act as agent for the credit providers and to collect “charged off” or “handed over” debt. Where credit providers have had no success in collecting the “charged off” debt, they would hand this debt over to an attorney to collect it on their behalf.

The executives of Daly Credit Corporation were Bill Daly who was the Executive Chairman, and Andy McNabb who fulfilled the role of Managing Director.

Investment Logic

daly-officesDaly’s provided Conexus the opportunity of investing in a defensive business. The unusual combination of a legal practice and call centre allowed adoption and expansion of the model. The fast changing demographic economics of South Africa also created a growth vector for Daly’s.

In the initial years to 2010, the company battled to demonstrate significant growth. However, after broadening the scope of the business, improving systems and efficiencies as well as some management changes, significant growth was demonstrated in the latter half of 2011. This provided Conexus the opportunity to sell the business to the HolGoun Group and in November 2011 the investment was realised for an IRR of 33.9%.

bill-daly andy-mcnabb
   Bill Daly                                                  Andy McNabb
   Executive Chairman                            Managing Director

For more information on Daly, please visit their website.