Private equity shows its mettle over past decade
THE private equity industry in SA more than tripled returns to investors in the 10 years to 2015, a Southern African Venture Capital and Private Equity Association (Savca) survey showed on Tuesday.Savca CEO Erika van der Merwe attributed the strong showing to the maturing of private equity investments.Private equity involves the buying and selling of unlisted companies. In 2005, the industry raised R2.2bn from investors. Last year, it returned R8.9bn to investors on roughly the same assets through disposal proceeds, loan repayments, interest and dividends."We are at a point where (private equity) funds are mature, and we are seeing a lot of exits," Van der Merwe said.Ethos Private Equity dominated Savca’s ranking of the top five disposals in 2015, selling Tiger Wheel & Tyre parent TI Auto to Old Mutual and the Carlyle Group; plumbing supplier Plumblink to Bidvest for R446m; and cashing in the rest of its shares in Transaction Capital, which listed on the JSE in 2012, for R422m.Over ...
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