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    The Private Equity Industry in South Africa 2023

    Stephen Timm | South Africa | 24 March 2023

    The Private Equity Industry in South Africa 2020

    Carole Veitch | South Africa | 27 March 2020

    The Private Equity Industry in South Africa 2018

    Louise Mitchell | South Africa | 07 November 2018

    The Private Equity Industry in South Africa 2016

    Ebrahim-Khalil Hassen | South Africa | 09 March 2016

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report covers the private equity sector in South Africa including venture capital and SME funding. It includes information on the size and state of the sector, investment and corporate activity, funds under management, funds raised and returns, notable players and developments, including regulatory developments which could result in new investment trends. There are profiles of 28 companies including RMB Corvest and RMB Ventures, Metier, African Rainbow Capital, Hlayisani Capital, Vantage Capital and the SA SME Fund.

    The Private Equity Sector in South Africa

    While funds under management have increased, the private equity sector has experienced a slowdown in the value and number of investments since 2018. Returns have also been falling recently. The slowing global and local economy is likely to mean a tougher 2023 for fund managers. South Africa’s grey listing and ratings downgrades are other challenges. However, Pension Funds Act amendments, which came into effect in January 2023, could help increase investment in venture capital and in infrastructure.

    Venture Capital

    In recent years there has been an increase in venture capital investments in startups. Fintech accounts for most venture capital investments and exits by value and number. There has also been an increase in the number of institutional investors backing venture capital. Increasingly South African venture capital funds are investing in startups on the rest of the continent. Most venture capital investments are at early stage and there is a lack of follow-on funding.

    Regulation

    Amendments to Regulation 28 of the Pension Funds Act, which came into effect in January 2023, allow pension funds to allocate up to 45% investment in South African infrastructure projects, up from 30% previously. They also increase the amount of assets pension funds can allocate to private equity to 15% (from 10% previously).

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    The Private Equity Industry in South Africa 2023

    Full Report

    R 20 000.00(ZAR) estimated $1068.03 (USD)*

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    Industry Overview

    R 14 000.00(ZAR) estimated $ 747.62 (USD)*

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    Historical Reports

    The Private Equity Industry in South Africa 2020-03-27

    R 1 900.00(ZAR) estimated $101.46 (USD)*

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    The Private Equity Industry in South Africa 2018-11-07

    R 1 900.00(ZAR) estimated $101.46 (USD)*

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    The Private Equity Industry in South Africa 2016-03-09

    R 1 900.00(ZAR) estimated $101.46 (USD)*

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 5
    2.3. Size of the Industry 6
    3. LOCAL 10
    3.1. State of the Industry 10
    3.2. Key Trends 16
    3.3. Key Issues 21
    3.4. Notable Players 21
    3.5. Corporate Actions 22
    3.6. Regulations 27
    3.7. Enterprise Development and Social Development 31
    4. AFRICA 33
    5. INTERNATIONAL 37
    6. INFLUENCING FACTORS 40
    6.1. Economic Environment 40
    6.2. Labour 41
    6.3. Technology, R&D, Innovation 42
    6.4. Government Involvement 43
    6.5. Pension Fund Investment 44
    6.6. Infrastructure Investment 45
    6.7. Environmental Issues, ESG and Responsible Investing 46
    6.8. Cybersecurity 48
    7. COMPETITIVE ENVIRONMENT 48
    7.1. Competition 48
    7.2. Ownership Structure of the Industry 49
    7.3. Barriers to Entry 51
    8. SWOT ANALYSIS 51
    9. OUTLOOK 52
    10. INDUSTRY ASSOCIATIONS 53
    11. REFERENCES 53
    11.1. Publications 53
    11.2. Websites 54
    APPENDIX 1 56
    Summary of Notable Players 56
    COMPANY PROFILES 61
    4Di Group (Pty) Ltd 61
    Acorn Private Equity (Pty) Ltd 63
    African Rainbow Capital Investments Ltd 65
    Altvest Capital Ltd 68
    AYO Technology Solutions Ltd 70
    Bopa Moruo Private Equity Fund Managers (Pty) Ltd 73
    Convergence Partners Management (Pty) Ltd 75
    Edge Growth Business Development (Pty) Ltd 78
    Grovest Venture Capital Company (Pty) Ltd 80
    Havaic Holdings South Africa (Pty) Ltd 82
    Hlayisani Fund Managers (Pty) Ltd 84
    Horizon Equity Partners (Pty) Ltd 85
    IDF Capital (Pty) Ltd 87
    Jozi Angels Investment Group (Pty) Ltd 89
    K2018565981 (South Africa) (Pty) Ltd 90
    Launch Africa Ventures Fund 1 91
    Metier Investment and Advisory Services (Pty) Ltd 93
    Naspers Ltd 96
    NESA Venture Capital Investments (Pty) Ltd 100
    Pallidus Holdings (Pty) Ltd 102
    Pembani Remgro Infrastructure Managers (Pty) Ltd 104
    Phatisa Managers (Pty) Ltd 106
    RMB Corvest (Pty) Ltd 109
    RMB Ventures (Pty) Ltd 111
    SA SME Fund Ltd (The) 113
    Vantage Capital Group (Pty) Ltd 115
    Vuna Partners (Pty) Ltd 117
    Vunani Capital Partners Ltd 119

    Report Coverage

    This report focuses on the South African Private Equity Industry and includes comprehensive information on the state and size of the industry, influencing factors, corporate actions and issues affecting SME funding. There are profiles of 45 companies including private equity players such as Ethos, Actis, African Rainbow Capital, Brait and Metier. Other profiles include government-owned Industrial Development Corporation and the National Empowerment Fund, industry participants in the SME space such as AngelHub Ventures and Newtown Partners, and Section 12J companies such as Westbrooke and Grovest.

    The South African Private Equity Industry (Including SME Funding)

    Southern African private equity funds under management grew at a compound annual rate of over 9% over the past two decades. Private equity investments generate financial returns for investors and play a role in stimulating the economy and job creation. Although private equity continues to attract investors seeking access and exposure to unlisted companies with high growth prospects, the asset class remains under-utilised.

    Limited Allocation

    While investment opportunities are plentiful in South Africa, the fundraising environment remains extremely challenging, particularly for early stage funds. Role players say that in addition to the unfavourable economic environment, many prospective investors still have a relatively limited understanding of the value of private equity and venture capital. Local pension fund allocations to private equity funds are around 5%, well below the 10% threshold.

    SME Funding

    Section 12J legislation aimed at stimulating private investment in startups and SMEs by providing tax relief has seen a marked increase in approved 12J venture capital investments. The legislation, which contains a sunset clause ending tax deductions in 2021, is under review. The industry is lobbying Treasury for an extension as these investments have incentivised investment into SME development, which stimulates the domestic economy and helps to create jobs.

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    The Private Equity Industry in South Africa 2020

    Full Report

    R 1 900.00(ZAR) estimated $101.46 (USD)*

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    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.02 (USD)*

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    Historical Reports

    The Private Equity Industry in South Africa 2023-03-24

    R 20 000.00(ZAR) estimated $1068.03 (USD)*

    View Report Add to Cart

    The Private Equity Industry in South Africa 2018-11-07

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    The Private Equity Industry in South Africa 2016-03-09

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 11
    4.1.2. Regulations 13
    4.1.3. Enterprise Development and Social Economic Development 16
    4.2. Continental 20
    4.3. International 23
    5. INFLUENCING FACTORS 26
    5.1. Economic Environment 26
    5.2. Pension Fund Investment 26
    5.3. Infrastructure Investment 27
    5.4. Responsible Investing 27
    5.5. Impact Investing 28
    5.6. Labour 29
    5.7. Technology, Research and Development (R&D) and Innovation 30
    5.8. Cybersecurity 30
    6. COMPETITION 31
    6.1. Barriers to Entry 31
    7. SWOT ANALYSIS 32
    8. OUTLOOK 33
    9. INDUSTRY ASSOCIATIONS 33
    10. REFERENCES 34
    10.1. Publications 34
    10.2. Websites 34
    APPENDIX 1 36
    Private Equity Deals in 2019 36
    APPENDIX 2 39
    Summary of Notable Players 39
    COMPANY PROFILES 50
    ACORN PRIVATE EQUITY (PTY) LTD 50
    ACTIS AFRICA LTD 52
    AFRICAN RAINBOW CAPITAL INVESTMENTS LTD 54
    AGILE CAPITAL (PTY) LTD 57
    ANGELHUB (PTY) LTD 59
    BOXCARS DOZEN (PTY) LTD 60
    BRAIT SE 62
    BUSINESS PARTNERS LTD 64
    CAPITALWORKS INVESTMENT PARTNERS (PTY) LTD 69
    DEVELOPMENT BANK OF SOUTHERN AFRICA 71
    DEVELOPMENT PARTNERS INTERNATIONAL LLP 74
    EDGE GROWTH BUSINESS DEVELOPMENT (PTY) LTD 76
    EPE CAPITAL PARTNERS LTD 78
    ETHOS PRIVATE EQUITY (PTY) LTD 81
    EXEO CAPITAL (SA) (PTY) LTD 84
    GROVEST VENTURE CAPITAL COMPANY (PTY) LTD 86
    HARITH GENERAL PARTNERS (PTY) LTD 88
    HORIZON EQUITY PARTNERS (PTY) LTD 91
    HULISANI LTD 92
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 95
    INTEL SOUTH AFRICA CORPORATION 106
    INTERNATIONAL FINANCE CORPORATION 108
    KALON VENTURE PARTNERS LTD 111
    KNIFE CAPITAL (PTY) LTD 113
    KZN GROWTH FUND TRUST 115
    LEBASHE INVESTMENT GROUP (PTY) LTD 118
    LEREKO INVESTMENTS (PTY) LTD 120
    LUCID VENTURES (PTY) LTD 123
    MINEWORKERS INVESTMENT COMPANY (RF) (PTY) LTD 124
    NATIONAL EMPOWERMENT FUND TRUST 127
    NEDBANK LTD 132
    NESA VENTURE CAPITAL INVESTMENTS (PTY) LTD 141
    NEWTOWN PARTNERS (PTY) LTD 143
    NOVARE EQUITY PARTNERS (PTY) LTD 145
    OLD MUTUAL PRIVATE EQUITY (DIVISION OF OLD MUTUAL INVESTMENT GROUP (PTY) LTD) 147
    PALLIDUS HOLDINGS (PTY) LTD 149
    PEMBANI REMGRO INFRASTRUCTURE MANAGERS (PTY) LTD 151
    PUBLIC INVESTMENT CORPORATION SOC LTD 153
    REMGRO LTD 161
    RH BOPHELO LTD 166
    RMB PRIVATE EQUITY (PTY) LTD 168
    ROCKWOOD PRIVATE EQUITY (PTY) LTD 170
    SANLAM PRIVATE EQUITY (DIVISION OF SANLAM INVESTMENT MANAGEMENT (PTY) LTD) 172
    SASFIN CAPITAL (PTY) LTD 174
    WESTBROOKE ALTERNATIVE ASSET MANAGEMENT (PTY) LTD 176

    Report Coverage

    The Private Equity report describes important changes and key developments, current conditions, recent merger and acquisition activity and factors influencing the success of the industry. The report profiles 25 public and private companies including the Public Investment Corporation, Ethos, Brait, African Rainbow Capital, Lereko and the private equity arms of major fund managers including Old Mutual and Sanlam.

    Private Equity

    Private equity’s capital penetration, or capital injected into the economy through private investments, was equal to 0.7% of GDP in 2017, and the sector is an important role player in the development of companies and infrastructure projects in the country. South Africa’s private equity industry had R158bn in funds under management in 2017. The volume and value of private equity and venture capital deals targeting South African companies declined year-on-year in 2017 with 43 deals worth a combined US$312m, compared to the US$896m invested across 60 deals in 2016. In terms of value, 2017’s results were the lowest since 2010. Private equity continues to outperform listed equity.

    Influencing Factors

    The relatively expensive level of equities on the Johannesburg Stock Exchange, regulatory acceptance of investment by South African pension funds in private equity funds, government’s renewable energy programme, the need for banks to reduce their loan books, infrastructure requirements and the economic growth enjoyed by some sub-Saharan African countries are fuelling renewed interest in private equity investment. While the recent focus has been on deploying rather than raising funds, the decline in fundraising is a concern to industry role players.

    Read More..
    The Private Equity Industry in South Africa 2018

    Full Report

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.02 (USD)*

    Buy Now +

    Historical Reports

    The Private Equity Industry in South Africa 2023-03-24

    R 20 000.00(ZAR) estimated $1068.03 (USD)*

    View Report Add to Cart

    The Private Equity Industry in South Africa 2020-03-27

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    The Private Equity Industry in South Africa 2016-03-09

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF INDUSTRY 1
    2.1. Industry Body 4
    2.2. Industry value chain 4
    2.3. Geographic Position 6
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 8
    4.1. Local 8
    4.1.1. Corporate Actions 11
    4.1.2. Regulations 14
    4.1.3. Enterprise Development and Social Economic Development 18
    4.2. Continental 22
    4.3. International 24
    5. INFLUENCING FACTORS 26
    5.1. Economic environment 26
    5.2. Pension Fund Investment 27
    5.3. Infrastructure Investment 28
    5.4. Responsible Investing 29
    5.5. Impact Investing 30
    5.6. Labour 31
    5.7. Information Technology (IT), Research and Development and Innovation 32
    5.8. Cybersecurity 33
    6. COMPETITION 33
    7. SWOT ANALYSIS 34
    8. OUTLOOK 35
    9. INDUSTRY ASSOCIATIONS 35
    10. REFERENCES 36
    10.1. Publications 36
    10.2. Websites 37
    APPENDIX 1 38
    Summary of Major Players 38
    COMPANY PROFILES 46
    ACTIS AFRICA LTD 46
    AFRICAN RAINBOW CAPITAL INVESTMENTS LTD 48
    BRAIT SE 51
    BUSINESS PARTNERS LTD 54
    CAPITALWORKS INVESTMENT PARTNERS (PTY) LTD 59
    DEVELOPMENT BANK OF SOUTHERN AFRICA 61
    DEVELOPMENT PARTNERS INTERNATIONAL LLP 64
    EPE CAPITAL PARTNERS LTD 66
    ETHOS PRIVATE EQUITY (PTY) LTD 69
    HULISANI LTD 72
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 75
    INTEL SOUTH AFRICA CORPORATION 86
    INTERNATIONAL FINANCE CORPORATION 88
    KZN GROWTH FUND TRUST 91
    LEREKO INVESTMENTS (PTY) LTD 94
    MINEWORKERS INVESTMENT COMPANY (RF) (PTY) LTD 97
    NATIONAL EMPOWERMENT FUND TRUST 100
    NEDBANK LTD 105
    OLD MUTUAL PRIVATE EQUITY (DIVISION OF OLD MUTUAL INVESTMENT GROUP (PTY) LTD) 114
    PEMBANI REMGRO INFRASTRUCTURE MANAGERS (PTY) LTD 117
    PUBLIC INVESTMENT CORPORATION SOC LTD 119
    REMGRO LTD 126
    RMB PRIVATE EQUITY (PTY) LTD 131
    ROCKWOOD PRIVATE EQUITY (PTY) LTD 133
    SANLAM PRIVATE EQUITY (DIVISION OF SANLAM INVESTMENT MANAGEMENT (PTY) LTD) 135

    Report Coverage

    The Private Equity report describes important changes and key developments since 2009, current conditions, recent merger and acquisition activity, and factors influencing the success of the industry. The report profiles 22 companies, including major role players, the Public Investment Corporation SOC Ltd (PIC), the Industrial Development Corporation of South Africa Ltd (IDC) and the Development Bank of Southern Africa t/a DBSA, as well as smaller concerns such as Rockwood Private Equity (Pty) Ltd and Lereko Investments (Pty) Ltd.

    The South African Private Equity Sector

    This report focuses on the private equity industry in South Africa since 2010. South Africa has a sophisticated and established private equity industry when compared to other emerging and developing countries. The sector had R 162.2bn in funds under management in 2013, which according to the South African Venture Capital and Private Equity Association (SAVCA) and KPMG, represents compound annual growth of 11.8% since 1999. During 2014 the value of funds under management increased to R171.1bn.

    Government Support

    Since the 2008 financial crisis that knocked investor confidence, the South African government has introduced regulations to encourage growth in private equity. These include changes to Regulation 28 in 2011 which allows pensions to invest up to 10% of their portfolios in private equity, up from 2.5%, while the Government Employee Pension Fund (GEPF) revised its mandate to allow it to allocate 5% of its portfolio to unlisted investments. National Treasury introduced tax incentives for venture capital firms, and in 2014 offered a further set of incentives. This included increasing the total asset limit for qualifying investee companies from R20m to R50m.

    Room for Optimism

    Although South Africa will continue to experience low economic growth, the economic environment for private equity in the country is largely positive. One of the reasons is that the sector is supported by effective legal and efficient systems that are deemed amongst the best in the world, according to the World Economic Forum (WEF). The local private equity sector experiences a high level of corporate activity and accounted for 76% of the deal volume (36 deals) and 92% of the deal value in Southern Africa between 2007 and 2014.

    Read More..
    The Private Equity Industry in South Africa 2016

    Full Report

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.02 (USD)*

    Buy Now +

    Historical Reports

    The Private Equity Industry in South Africa 2023-03-24

    R 20 000.00(ZAR) estimated $1068.03 (USD)*

    View Report Add to Cart

    The Private Equity Industry in South Africa 2020-03-27

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    The Private Equity Industry in South Africa 2018-11-07

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF INDUSTRY 1
    2.1. Industry value chain 3
    2.2. Geographic Position 5
    3. SIZE OF INDUSTRY 5
    4. STATE OF THE INDUSTRY 15
    4.1. Local 15
    4.1.1. Corporate Actions 16
    4.1.2. Regulations 20
    4.1.3. Enterprise Development and Social Economic Development 25
    4.2. Continental 26
    4.3. International 29
    5. INFLUENCING FACTORS 30
    5.1. Economic environment 30
    5.2. Labour Resources 32
    5.3. Technology, Research and Development (R&D) and Innovation 33
    5.4. Environmental Concerns 33
    6. COMPETITION 34
    6.1. Competition Commission Rulings 34
    7. SWOT ANALYSIS 35
    8. OUTLOOK 36
    9. INDUSTRY ASSOCIATIONS 36
    10. REFERENCES 36
    10.1. Publications 36
    10.2. Websites 37
    COMPANY PROFILES 38
    Actis Africa Ltd 38
    Brait SE 40
    Business Partners Ltd 42
    CapitalWorks Investment Partners (Pty) Ltd 46
    Development Bank of Southern Africa 48
    Development Partners International LLC 52
    Ethos Private Equity (Pty) Ltd 54
    Industrial Development Corporation of South Africa Ltd 56
    Intel South Africa Corporation 63
    International Finance Corporation 65
    KZN Growth Fund Trust 68
    Lereko Investments (Pty) Ltd 71
    M FITEC International Ltd 74
    Mineworkers Investment Company (RF) (Pty) Ltd 76
    National Empowerment Fund Trust 79
    Nedbank Ltd 84
    Old Mutual Private Equity (Division of Old Mutual Investment Group (South Africa) (Pty) Ltd) 92
    Public Investment Corporation SOC Ltd 95
    Remgro Ltd 101
    RMB Private Equity (Pty) Ltd 106
    Rockwood Private Equity (Pty) Ltd 108
    Sanlam Investment Management (Pty) Ltd 111

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