Media And News

SAVCA Newsletter | 20 February 2014

Dear SAVCA members and friends

The mood at last week’s Private Equity in Southern Africa 2014: Geared for Growth Conference was celebratory: From the frank and varied conversations and presentations it was apparent that interest in the region is keen and that institutional investors and private equity fund managers continue to seek – and find – opportunity.

We’re grateful to sponsors, supporting organisations, speakers and attendees for their enthusiastic contributions to making this event a memorable one.

If you missed the conference, you can get a feel for it by browsing the photos, watching informal interviews with attendees, and by having a look at footage of the SAVCA-EMPEA Members’ Reception. Thepresentations are also available.

There’s plenty more to come for SAVCA members in 2014. We start off with an ESG Masterclass in Cape Town on 7 March and the SAVCA-GIBS Three-Day Foundation Programme in Private Equity on 6-8 August. Watch out, too, for research publications in the first half of this year – and the publication of the SAVCA Members’ Directory.

SAVCA members who haven’t yet submitted their complimentary entry for the Directory, or who might need help completing the template, can contact Nicole Berger on info@savca.co.za

Members and friends have the option of advertising in the Directory, as well as other SAVCA publications. Contact the SAVCA office oninfo@savca.co.za for more information and package deals.

Regards

Erika van der Merwe
CEO: SAVCA

Regulation:

Section 23N of the Income Tax Act:

During the course of last year, SAVCA had a number of engagements with National Treasury regarding Section 23N of the Income Tax Act. This year SAVCA met with representatives from both National Treasury and SARS on the matter and presented a range of proposals, including proposals for the amendment of the indexing provisions. SAVCA will continue to provide feedback to members on this issue.

FATCA:

SAVCA members are reminded that South African private equity firms are regarded as Foreign Financial Institutions (FFI) under the US’s FATCA Regulations. The South African authorities are in the process of drawing up an Intergovernmental Agreement (IGA) with the IRS, which will govern South African entities’ compliance with this legislation. In the meantime, SAVCA members are urged to engage advice on their FATCA implementation obligations, including the process of registration on the FATCA portal, the on-boarding of new clients, and the development of a necessary reporting system to facilitate the reporting obligation imposed under the IGA. In terms of the advice which SAVCA elicited for its members from KPMG, members need to note the following:

1. All Reporting Financial Institutions must register on the IRS Portal by25 April 2014 to ensure inclusion on the first FFI list to be published electronically by the IRS. Nevertheless, the IRS has given FFIs until the end of 2014 to finally register.

2. All Reporting Financial Institutions must have implemented the client identification obligations and commence on-boarding of new individual clients and entity clients in line with the IGA requirements by 1 July 2014.

3. SAVCA is in discussions with SARS on the obligation to develop necessary reporting systems, and will be able to provide further feedback in the near future. However, we urge members to familiarise themselves with this onerous obligation.

Venture Capital

SiMODiSA

SAVCA is pleased and proud to announce that it is a sponsor of the SiMODiSA initiative. The SiMODiSA Association is a non-profit organisation established for the following sole objective:

To undertake research and advocacy on behalf of high growth, high impact, technology enabled Small Businesses (SMBs) and Social Enterprises (SEs) and to assist these potential high growth high impact enterprises in their job creation, funding, skills development and economic growth efforts.

The SAVCA VC Sub-committee has thrown its full support behind SiMODiSA in an attempt to make a real impact in four core areas for the benefit of the startup [VC] funding ecosystem:

A. Funding & Incentives
B. Regulatory & Compliance
C. Talent & Visa Program
D. IP & Technology

Pitching Venture Capital

Included in the Great After-Lunch Debate of last week’s conference was a six-minute pitch for Venture Capital. Have a look at Keet van Zyl’s (Knife Capital) slide deck.

SAVCA Events

ESG Masterclass: Beyond Compliance — How to gain financial value from ESG in the Private Equity Investment Cycle

Presenter:       James Brice, MD of Environmental Business Strategies
Date:               Friday 7 March 2014
Time:               Arrival at 08:00; course to end by 13:00
Venue:             22 Bree Street, Cape Town (Offices of Bowman Gilfillan)
Cost:                R2 800 for SAVCA members; R3 200 for non-members
Registration:    info@savca.co.za

SAVCA-GIBS Three-Day Foundation Programme in Private Equity

Dates:              6-8 August 2014
Venue:             Gordon Institute of Business:  26 Melville Road, Illovo, Johannesburg
Cost:                SAVCA members pay R8 500; non-members pay R9 500.
Registration:    Click here to register.
Book before 5 May 2014 and qualify for R1 000 early-bird discount.

SAVCA in the News

Venture Capitalists eagerly await Budget Speech

Global players drive private equity growth in Africa

Interview with Making Finance Work for Africa

2013 Slump in South Africa’s PE Investments?

SA private equity returns keep ahead of listed market

Interview on RSG: Waagkapitaal- en private ekwiteitsbateklasse word herposisioneer vir veranderende beleggingslandskap

Michael Jordaan compares winemaking and venture capital

SAVCA Members in the News

Convergence Partners invests in 4Di Capital

No two days the same in African private equity

Vumela backs disruptive technology in mining ventilation seal installation

Unwrapping the mysteries of SA’s venture metrics landscape [Infographic]

Lereko Metier Capital Growth Fund exits Surgical Innovations to Ascendis Health

Agri-Vie awarded the Agribusiness Investment Initiative of the Year Award

Private equity firm explains why it backed a Kenyan flower company

Emerging markets making waves

Nedbank acquires 30% stake in local soft-drinks company

Fund allots up to $250m to Africa investments

South African Fund Administrator IDS Fund Services Selects eFront Solution

StanChart Targets Africa Buyouts After $700 Million of Deals

All eyes on the PIC’s big push into Africa

Excellent returns realised by private equity investors in affordable housing

Acorn Equity Update

Convergence Partners on CNBC Africa

AIIM on CNBC Africa

Industry News

Lessons to Grow By: Private Equity in Sub-Saharan Africa | Brookings Institution

ITInews – Insurance Times and Investments Online

Industry Events

11th Annual AVCA Conference

IFC & EMPEA 16th Annual Global Private Equity Conference

EVCA Investors’ Forum 12-13 March 2014, Geneva:

Jobs portal

SAVCA members can advertise private equity positions on the Jobs Portal on the SAVCA website.

Capital Raiser: Private Equity