Dear SAVCA Members and Friends,

Exit ahead for Alexander Forbes

The breaking industry news for this week is the formal announcement that Alexander Forbes intends to re-list on the JSE in July. This is a much-anticipated listing by a major South African financial services group which is also Africa’s largest independent pension-fund manager. The move is an exit by Ethos Private Equity and Actis LLP, who bought Alexander Forbes for R8.2 billion in 2007.  Mercer Africa Limited, a subsidiary of Marsh & McLennan Companies Inc. is set to become a 34% shareholder in the group – a stake which Bloomberg values at R3.87 billion. According to Moneyweb, this stake represents Mercer’s confidence in both the African growth story and the Alexander Forbes management team.

The latest RisCura Bright Africa Report, launched this week, gives a quantitative assessment of the opportunities presented by the African growth story. Further details are available below, and in the comprehensive report.

Private equity exits, seeking investment opportunities and deal-making across Africa are amongst the topics to be covered in the SAVCA-GIBS Three-Day Foundation Programme in Private Equity. With almost 100 delegates already registered to attend the course on 6-8 August 2014, those still interested in joining in are encouraged to register and secure their places before the session is fully booked.

SAVCA is proud to be launching a Two-Day Foundation course in Venture Capital, which will run in Johannesburg on 9-10 September 2014. Look out for further details.

Meanwhile, send us your details: Keep the SAVCA community updated with your deal announcements, opinion pieces, staffing changes and media mentions. Keep checking the SAVCA website to find new research, industry updates, upcoming events and links to SAVCA members in the news.

Brighten up your day further by looking through our photo gallery for familiar faces in attendance at the Johannesburg launch of the 2014 SAVCA-KPMG Private Equity Industry Survey.

Regards
Erika van der Merwe
CEO: SAVCA

SAVCA Events

More information coming soon. Keep up to date with all our events and courses on our online calendar.

Regulation

Legal & Regulatory Briefing to SAVCA Members

A range of domestic and international legal and regulatory developments are under way that will shape the South African private equity industry for years to come. These developments extend across the fields of tax legislation, tax reporting, financial-services regulation, fundraising in foreign territories and black economic empowerment considerations in the local market.

SAVCA continues to do research on the various matters, and is in regular contact with the relevant policymakers and advisors, to ensure that the South African private equity industry is prepared for and compliant with new requirements.

SAVCA members are invited to attend an informal briefing by the SAVCA Regulatory Sub-Committee on these matters. The purpose of the session is to keep you informed and to share perspectives amongst industry practitioners.

Topics to be covered: Section 23N of the South African Income Tax Act, the FATCA reporting obligation, the IT3 reporting obligation, the dividend-withholding tax reporting obligation, BEE codes, FSB licencing, AIFMD.

Date: Tuesday 22 July 2014
Time: Arrival at 7.50am; Session runs from 8.00am to 9.30am
Venue: Webber Wentzel Auditorium; 10 Fricker Road, Illovo, Johannesburg
Parking: Parking is available at 10 Fricker Road
RSVP: By Friday 18 July, to info@savca.co.za or 011-2680041

Research and publications

Last week we reflected on the growth of private equity funds in South Africa with the launch of the SAVCA-KPMG Private Equity Industry Survey. Of the R162.2 billion funds under management by end 2013, the industry currently has R58.6 billion still to be invested – a record level of undrawn capital. The recently released 2014 Preqin Global Private Equity Report indicates that this is part of broader trend. According to the report, the amount of money raised by private-equity firms but not yet invested hit a record high of $1.073 trillion globally at the end of 2013 – an increase of $130 billion from 2012.

RisCura’s Bright Africa Report, released this week, emphasises that there is significant opportunity across various African markets for private equity. Some of the highlights from this innovative look at investing in Africa are:

• Capital flows to Africa are increasing, by way of foreign direct investment, flows into listed equity and into private equity
• Nigeria represents a global – and not only a regional – success story
• African listed markets have performed very well
• The cost of investing across most sectors in Africa is reasonable
• Private equity activity is occurring across sectors

SAVCA in the news

The personal touch – private equity can help fund development on the continent I JSE Magazine

The state of private equity returns I Bloomberg TV Africa

South Africa sees a 17% rise in private equity investment I CCTV America

Private equity: Pension Funds show Faith | Financial Mail

SAVCA members in the news

Alexander Forbes to list in July | Moneyweb

K&WM SJB wins ‘Legal Advisor of the Year – Funds’ at PEA Awards I Mallesons.com

Agri-Vie’s strategy for investing in the food sector I Cape Business News

AES closes sale of Cameroon Assets to Actis I Nasdaq Tshwane, DBSA sign R1.6bn loan I Business Report

Industry news and insights

Institutional Investors Newly Tempted by Venture Capital I Chief Investment Officer

FATCA -The Global Reach of the IRS I Huffington Post

Bargain hunting? Check the business rescue space I Moneyweb

Lambert Private Equity takes stake in SA based Giyani Gold I Mining Weekly }

Abraaj Group aims for Cairo Medical Center takeover I Reuters Africa

CDC invests up to US$20m in power in Cameroon I AVCA

Private equity firing up medical marijuana sector I The Deal

Private equity firm says SA most expensive for technology start-ups I Ventureburn

Africa not giving female entrepreneurs enough support I Ventures Africa

Kolo Touré backs investment fund targeting wealthy African footballers I How we made it in Africa

Private Equity, Hedge Funds “Make It Rain” I Wall Street Journal

Advertising with SAVCA

SAVCA welcomes the opportunity of working with members and stakeholders in promoting the Southern African private equity and venture capital industry. The organisation constantly seeks creative ways of doing so, including through the marketing member firms’ activities. Should you wish to find out more about various marketing and advertising opportunities with SAVCA, contact the office on info@savca.co.za.

Job opportunities

Junior Fund Accountant Fund V I Ethos Private Equity I Johannesburg
Fund Accountant: Reporting Fund V I Ethos Private Equity I Johannesburg
Contact info@savca.co.za to advertise an opening at your firm on our online jobs portal.