Private Equity Annual Review (2015)- Financier Worldwide
What trends have you seen in Private Equity deal-making in South Africa over the last 12-18 months? How would you describe activity levels?
“Three primary trends and activity levels have emanated from the private equity (PE) industry in South Africa over the last 12 to 18 months, some of which bear a resemblance to deal making activity in 2006 and 2007. Investment activity in South Africa for the 12 months ending 31 December 2014 amounted to approximately R17.4bn. During the last two years the number of reported investments in South Africa has averaged approximately 300 per annum. Some of the most notable deals included Ethos Private Equity’s acquisitions of Autozone and the RTT Group and the Carlyle Sub-Saharan Africa fund’s acquisition of the Tiger Wheel and Tyre Group. Funds returned to investors during the 12 months ending 31 December 2014 amounted to approximately R14.2bn.”
Notable exits included Ethos Private Equity’s disposal of Alexander Forbes and its subsequent listing, as well as its disposal of Tiger Automotive to the Carlyle Group. Higher growth rates in Africa have enticed South African and international PE forms with a South African presence to expand north.
The above is an excerpt from Financier Worldwide’s Private Equity Annual Review, 2015 edition.