A pioneering investment model that embeds a new CEO directly into a business is making its debut in South Africa’s industrial sector. Secha Capital, alongside 27four and Shade Tree Capital, has announced a strategic investment in Barracuda Holdings Ltd, a leading local electronics manufacturing services (EMS) provider. The deal introduces the Chief Executive Operator Investor (CEOI) model, designed to pair capital with hands-on operational leadership.
The transaction sees Aengus Stanley, founder of Shade Tree Capital, originate the deal and become Barracuda’s new Chief Executive Officer and a significant shareholder. Founders Rob Steltman and Ryan Webb will remain actively involved, focusing on key customer relationships and high-value engineering projects during the transition.
Barracuda specialises in complex, high-mix PCB assemblies for sectors including aerospace, space technology, defence, and industrial automation. Its recent major investment in a dedicated Aerospace Division underscores its ambition in high-specification markets.
“This next chapter for Barracuda is about building on the strong foundation,” said Aengus Stanley. “We are excited about combining the experience we bring from other industries with the current team’s deep EMS expertise.”
The CEOI model represents a structured search-fund approach tailored for emerging markets, where execution risk is a primary concern. Secha Capital developed it to provide not just capital, but an embedded operator with “meaningful skin in the game.”
“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 CEOI, an operating playbook and a deep focus on delivery,” said Brendan J. Mullen, managing director at Secha Capital. “Barracuda is a great example of this partnership in action: experienced founders, an on-the-ground CEOI through Shade Tree Capital, and aligned institutional investors.”
Investors believe this model can be a blueprint for succession and growth in founder-led industrial businesses. “By backing locally embedded owner-operators and founder teams, we believe this model can be replicated across many founder-led industrial and engineering businesses over the coming years,” added Rory Ord, Head of Private Markets at 27four.
For the founders, the model provided an attractive succession path that prioritized the business’s legacy and continued growth. “What excited us about this partnership was that it wasn’t just ‘sell and walk away’,” said founders Rob Steltman and Ryan Webb. “It was about handing the keys to a new entrepreneur, staying involved in the areas where we can add the most value—especially with our key customers and complex projects—and supporting Barracuda’s next phase of growth.”
The partnership aims to scale Barracuda’s operations while maintaining its renowned agility, quality, and innovation, positioning it as a critical player in South Africa’s advanced manufacturing landscape.
