Despite the environment for deal making being as modest as a Sunday picnic, fund raising received a welcome boost with the announcement by Metier Private Equity of the final close of its Metier Capital Growth Fund III, amassing over $219m and surpassing their $200m target. Akin to planting a garden in the middle of a desert, it is a testament to their grit and tenacity.
No surprise then that Paul Botha, the CEO and co-founder, wore such a broad smile as he shared the news.
“We are pleased with the support shown to Metier by our investors, and for this result, given the tough fundraising climate the African private equity industry is experiencing,” he said. Indeed, raising funds in this climate was like trying to grow roses in a blizzard, but Metier managed to bring spring early.
Metier is an independent, owner-managed private equity firm founded in 2003. Their entrepreneurial ethos is the secret sauce in their approach to dealmaking, forging deep partnerships with portfolio companies and management teams. With over 45 professionals, offices in Johannesburg, Mauritius and Nairobi, and representation in London, Metier’s team has pan-African reach. Their dual investment practices – Capital Growth and Sustainable Capital – target mid-cap entrepreneurial businesses and sectors in energy efficiency, renewables, water, and waste management.
​
Peter Maila – Co-Chief Investment Officer at FMO, the Dutch entrepreneurial development bank – remains an important backer of the Metier funds. FMO’s steady hand has been a guiding star, navigating stormy seas alongside Metier.
With a committed portfolio of ~€13bn across 85 countries, FMO stands tall among bilateral private sector development banks.
​
The fund, which started deploying capital in September 2023, has already dipped its toes in the waters of the telecommunication, information technology and energy sectors with three investments. Botha, ever the optimist, hinted at more to come before the year’s end.
​
“The Fund is positioned to make additional investments before the end of this year, given the vibrant deal pipeline we are observing,” he said. Metier’s eyes are set on opportunities that promise both growth and a touch of magic – top quartile returns and positive developmental impact.
Metier Capital Growth Fund III has its sights set on sub-Saharan Africa, aiming to sprinkle its capital on eight to twelve mid-market companies with robust growth features. These sectors thrive on regional economic and demographic trends, much like flowers that bloom with the coming of rain, and population growth and urbanisation are the rains Metier looks forward to.
In a time when the macro environment is starting to show signs of thawing – like the first flowers of spring – the closing of Metier Capital Growth Fund III couldn’t have come at a better moment. With the Fed hinting at rate cuts, the wind seems to be at Metier’s back. Deploying capital now, just as the sun peeks through the clouds, might just be the golden opportunity everyone’s been waiting for.