Through its Private Capital offering, Fedgroup has facilitated multi-million-rand investments deployed through asset-backed leases and a property facility.
Fedgroup has joined forces with Quip Investments (Pty) Ltd to fund the heavy machinery and infrastructure that prepare land for wind and solar projects. Over the past three years, that capital has enabled Quip to acquire a fleet of tipper trucks, rollers and graders and to establish depots near Paarl and in the Northern Cape. With Fedgroup retaining ownership of the equipment, investors’ capital remains secure and the predictable lease payments provide a steady income while Quip is free to exercise a purchase option when the time is right.
This collaboration addresses a critical bottleneck in South Africa’s energy transition. The country’s unreliable power supply has accelerated investment in wind and solar projects, but those assets can’t be installed without meticulous site preparation. Quip, a small-to-medium enterprise, specialises in clearing vegetation, removing debris and levelling terrain for major infrastructure projects. Its clients include industry stalwarts such as Concor, WBHO and Power Construction, and its projects are concentrated in the Western and Northern Cape. By financing Quip’s growth, Fedgroup is effectively investing in the supply chain layer that makes renewable infrastructure possible.
The partnership was born through a relationship-driven introduction via Bell Equipment. Fedgroup’s Private Capital team, which specialises in bespoke, asset-backed lending that drives growth in the real economy, quickly recognised the strategic fit. Rather than investing directly in turbines, Fedgroup deploys investors’ capital into contractors like Quip, where returns are secured by tangible assets. The investment shows Fedgroup’s commitment to profit with purpose and delivering financial returns while driving economic upliftment and environmental progress.
Quip has already expanded its fleet and mobilised its new depots, boosting capacity to work on several projects simultaneously. These hubs serve as service yards for equipment maintenance, parts storage and staff accommodation, reducing downtime and improving reliability in remote project areas. The knock-on effect is quicker project delivery, a more robust renewable energy pipeline and the creation of new jobs in rural communities. Although quantitative measures like job numbers, megawatts of renewable capacity enabled, and training hours are still being compiled, the social impact is evident.
The deal structure also benefits investors. Because the Fedgroup Private Capital Fund owns the machinery and leases it back to Quip at agreed rentals, investors enjoy stable income streams and assets with tangible value. This arrangement reduces the risk typically associated with SME lending and allows Quip to preserve its balance sheet for other strategic investments. It exemplifies how private credit, when thoughtfully structured, can finance sustainable infrastructure while safeguarding investors’ interests.
Ultimately, Fedgroup and Quip are not just building roads; they are laying the foundations for a resilient, low carbon economy. By focusing on the often overlooked layer of site preparation, they ensure that renewable projects break ground smoothly and that communities benefit from the jobs and opportunities created. This partnership demonstrates that sustainable finance can be both sound for investors and create social progress.
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