Fund attracts strong local and international investor support for South African mid-market strategy

Johannesburg, 29 June 2026 – Capitalworks, an independent alternative asset management firm focused on global emerging markets, today announced the launch of Capitalworks Private Equity Fund IV (CWPE IV), a South African-focused generalist private equity fund targeting total commitments of US$350 million, approximately R5.8 billion.

CWPE IV will continue the strategy pursued through Capitalworks’ predecessor funds, investing in established mid-market companies with strong growth prospects, defensible market positions and the potential to scale. Target sectors include fast-moving consumer goods, industrial services, logistics, retail, hospitality and tourism.

The first close has secured strong support from a high-quality group of local and international institutional investors which include, banks, pension funds, family offices, fund of funds and development finance institutions amongst others. Many of these investors have previously partnered with Capitalworks across Funds I, II and III, with their repeat commitments reflecting continued confidence in the platform, team and investment strategy.

“South Africa has a well-established private equity market, but the mid-market remains relatively underserved,” said Chad Smart, founder of Capitalworks. “We continue to see compelling opportunities to partner with high-quality businesses, support ambitious management teams and build companies with the potential to scale. This first close reflects strong confidence in our platform, our disciplined investment approach and the long-term opportunity in South Africa’s private sector.”

Two notable new investors in CWPE IV include Standard Bank of South Africa Limited and International Finance Corporation (IFC), a member of the World Bank Group and the world’s largest global development institution focused exclusively on the private sector in emerging markets. IFC has committed up to US$80 million, approximately R1.3 billion, comprising a US$40 million investment in CWPE IV and a US$40 million co-investment envelope.

The commitment represents one of IFC’s largest recent non-lending private fund investments in South Africa and underscores the strength of Capitalworks’ emerging-market investment track record, its South African mid-market capability and the opportunity to back growing private businesses in the country.

“IFC’s investment in Capitalworks Fund IV underscores our commitment to expanding opportunity through private sector growth in South Africa”, said Farid Fezoua, IFC’s Director of Equity, Funds, and Venture Capital. “We see the mid-market as a powerful driver of jobs and resilient local economies, and we’re excited to partner with Capitalworks to unlock its full potential and deliver lasting value.”

Commenting on their investment, Arnold van Wyk Head of Investments at Standard Bank said “Standard Bank is proud to support the first close of CWPE IV, reflecting our confidence in Capitalworks as a proven manager with a strong track record of sourcing, executing, and exiting proprietary opportunities in the South African mid-market. Beyond our role as capital partner, we look forward to working closely with the Capitalworks team to support the continued growth of the platform across this vintage.”

CWPE IV builds on Capitalworks’ 20-year emerging-market investment platform, spanning multiple funds, strategies and jurisdictions. Over the past two decades, Capitalworks Private Equity has invested successfully in more than 20 businesses through Funds I, II and III, including Rhodes Food Group, Much Asphalt, Peregrine Holdings, Robertson and Caine and Sovereign Foods. This track record reflects the platform’s depth of experience in backing established private businesses operating in attractive niches of the South African economy, supported by long-standing institutional investor relationships, disciplined capital deployment and the ability to invest through emerging-market cycles.

The fundraise comes at a time of markedly improving investor sentiment towards South Africa. Fitch upgraded South Africa’s sovereign credit rating to BB (from BB–) on 5 June 2026 – the country’s first Fitch upgrade in 21 years – citing prudent fiscal management, a shift to primary budget surpluses, and signs of stabilising government debt. Moody’s, meanwhile, revised its sovereign outlook from stable to positive on 22 May 2026, while affirming South Africa’s Ba2 rating, pointing to gradually strengthening fiscal performance and sustained commitment to structural reforms. Against this backdrop, the first close of CWPE IV represents a meaningful expression of confidence in both the Capitalworks platform and the opportunity to generate attractive returns by supporting the growth of established South African mid-market businesses.

Capitalworks’ private equity approach is differentiated by its partnership-led investment model, disciplined pricing and active involvement in portfolio companies. The firm places strong emphasis on downside risk management and value creation through operational improvement, governance enhancement, strategic expansion and, where appropriate, regional or international growth. It seeks to originate opportunities through deep market relationships and proprietary engagement.

“We are pleased to have secured strong first-close support from both local and international investors, including leading institutions such as the IFC,” said Chad Smart. “We are particularly encouraged by the continued support of returning investors, as well as the addition of new partners who share our confidence in the South African mid-market. We believe the current environment offers attractive entry points for patient capital with the ability to support growth, improve competitiveness and create lasting value.”

The South African mid-market offers a large pool of private businesses with strong fundamentals, entrepreneurial management teams and meaningful opportunities for growth. Capitalworks believes that businesses in this segment are well positioned to benefit from active ownership, strategic input and access to long-term institutional capital.

The final close of CWPE IV is expected in due course, subject to ongoing investor commitments and applicable regulatory requirements.

Rand equivalents are approximate and based on an average recent exchange rate of US$1 = R16.53.