Tag: private equity

In recent years, family offices have emerged as formidable players in the global financial landscape, managing substantial wealth on behalf of ultra-high-net-worth individuals. Although there is still a preference by some family offices to adopt a more hands-on approach by directly acquiring private companies and properties, many are mitigating risk by co-investing with seasoned private equity professionals in direct investments.

While inflation is moving steadily lower, we believe the secular shifts of deglobalisation, decarbonisation, and demographic change – the "3D Reset" - will keep inflation and interest rates higher for longer. With the added challenge of geopolitical conflicts, many investors are reassessing their private equity allocation. But almost every year since 2008 has involved a crisis for investors in private equity.

In today's corporate world, the integration of Environmental, Social, and Governance (ESG) factors into executive compensation plans has become a beacon of progressive strategy, illuminating the path towards sustainability and responsible governance.

Local and cross-border private equity (PE) investors continue to support the growth and development of companies in South Africa and the economy. With an increase in the establishment of PE funds both globally and in South Africa, as well as their appetite for investing in emerging markets, keeping track of the approach of PE funds and M&A lawyers to legal aspects surrounding PE deal-making is becoming increasingly important.

The cabinet approved a new state-owned enterprise (SOE) plan, which will lays the basis for private equity investment in state companies and listings on the stock exchange. It has already stirred significant debate and discussion – and rightly so, because full or partial privatisation by countries around the world has been met with mixed success.

Kicking off a debate over how best to make meaningful change through investment, we explore private equity’s unmatched ability to deliver capital to the places it’s needed most. Impact investment, at its core, is the task of identifying a change the world needs and deciding how to make it happen.

Bank or private debt and venture debt are separate segments in the debt financing market. In contrast to venture debt financings, which relate to start-ups, bank or private debt financings involve the financing of established companies that have already generated profits, can provide collateral and service the debt from the start.

While there is still largely a pessimistic mind-set regards the South African economy locally, there are many companies that have been reporting good results and positive profits margins - think banks and service industries. As such, there is a real case to be made that this (positivity) will be able to drive economic growth.

Investment strategies that are built on specific ethical factors are not new. The principles underpinning environmental, social, and governance (ESG) investment predate the 1960s. Early in the development of the ESG investment practice, ESG strategies were often performative and designed to appease customers or influence public perception.

There is an increasing amount of investment entering the venture capital and private equity space in South Africa and abroad. In the latest SAVCA Venture Capital Industry survey, it is said that R 6.97 billion had been invested into 841 active deals, with 53.4% of the recipients being seed or start-up stage businesses.