Real People Investment Holdings Ltd. (en anglais)



South Africa



Signing Date:

Dec 2007

Apr 2009

Lender of Record:



Cordiant Exposure:


EUR  14M

Company Description

Incorporated in East London, South Africa in 2001, Real People emerged from the consolidation of entities that were providing financial services in South Africa. The company focuses on unsecured credit, affordable housing, assurance, educational products and cellular products, and targets lower and middle income customers that are under-banked. Many of the applicants are not serviced by traditional banks. The company has more than 300 points of presence with more than 1 300 employees and operates in South Africa, as well as Uganda, Tanzania and Kenya.

Deal Logic

Economic and political reform and the policy of black economic empowerment are resulting in rapidly growing standards of living among the South African black majority. This segment however continues to have limited access to finance or credit. Real People, has grown to fill that gap.

Investment Rationale

  • Solid Borrower: Real People is well capitalized and profitable. Its leverage is low for a financial institution and its credit exposure is highly diversified.
  • Strong Management: The Real People management team consists of a group of managers with significant experience from working with other microfinance and consumer financing businesses in South Africa. The steering committee and top management of Real People has a hands-on approach in dealing with all aspects of the business. Management is moving into new dimensions of the business, introducing new products and services and taking controlled risk regarding new ventures.
  • Prudent Credit Culture with Detailed Affordability Checks Leveraged Through Advanced IT Systems.
  • Good Credit Collection Systems: Management has developed and implemented an efficient system to collect debt. Various ways to collect debt effectively have been developed, from ensuring the integrity of client information, using tracers, as well as using legal proceedings to collect debt.
  • Good Corporate Governance: Real People is currently implementing IFRS standards.