Q3 2024 - (released August 2024)
SA's quarterly Private Equity & Venture Capital magazine
From The Editor's Desk
by Marylou Greig
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As we enter the final stretch of 2024, we can see that private equity (PE) in South Africa has experienced significant growth
during the year, despite a complex economic backdrop marked by high interest rates and political uncertainty.
Ethos Capital notes that wealthy international investors who used to invest in private equity in South Africa – but who, for the past 10 years, have invested elsewhere – are now returning to the local market looking for best returns from good opportunities, of which South Africa has plenty. These investors previously made up 70% of available funds, which puts the importance of their return to SA in context.
At the time of writing, with some seven weeks to go before yearend, DealMakers had recorded 36 deals involving private equity funds in the exchange-listed space in South Africa. The sectors in which the majority of these occurred were General Industrials, Real Estate, Energy and Retail. The list of Q3 private equity deals recorded in the listed and unlisted space can be found on pg 12.
This year also marked a shift in fund allocations, with PE firms increasingly focusing on infrastructure and energy, while generalist investments have seen a relative decline. This focus is largely driven by a heightened emphasis on Environmental,Social and Governance (ESG) standards.
South Africa’s PE sector is leveraging both international and local opportunities, balancing resilience with strategic growth in sectors poised to support the country’s development goals and ESG commitments. This optimistic trend aligns with the country’s anticipated economic recovery, potentially fuelled by further upcoming interest rate cuts and a stabilising rand value. Articles from Bowmans (pg 1) and Agile Capital (pg 8) attest to this.
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In the second quarter of 2005, DealMakers launched Catalyst to document and cover an increasingly important industry. Private equity had come of age in South Africa, and its importance as a role player in the country's economy could no longer be ignored. Michael Avery took over the reigns as editor in 2014, following the death of my colleague and co-founder of the company, David Gleason. Bringing Michael back into the GP stable (where he had cut his journalism teeth under David’s mentorship) was the best decision for the magazine, which has grown in stature under his watch. Over the years, Michael has become a familiar presence across the various business mediums as a recognised financial journalist.
I am grateful to Michael for his time as editor of this publication, and my hope is that the magazine will continue to provide an informative read, tracking trends, investments and exits as the private equity and venture capital markets evolve.