Tag: PrivateEquity
South African private equity – the secondary market is coming
South Africa is sitting on a growing backlog of mature private equity assets. Managers cannot exit them, and investors cannot access them. The global solution already exists, but we are not using it yet. Exits depend on a cooperative stock exchange, willing trade buyers and investors patient enough to wait out a fund’s full life.
The 12J exit trap – what investors must do before it’s...
The five-year lock-in period on South Africa's Section 12J hospitality investments is over. Across the country, investors who entered these vehicles for the generous upfront tax deduction are now facing a far more sobering reality. Hospitality investors face distressed assets, a near-absent secondary market and a Capital Gains Tax (CGT) liability that is calculated not on their actual return, but on every Rand they receive at exit.
Why are private capital markets still deemed “risky” investments?
Despite the private capital industry’s proven track record, many investors still view Private Equity (PE) and Venture Capital (VC) as inherently risky investments. However, this perception does not fully reflect how private capital markets actually function. This conversation around risk in private capital markets is long overdue for reframing. Risk in private capital markets differs fundamentally from that experienced in public markets.
