Ethos Fund VI exceeds fundraising target
Ethos Private Equity, South Africa’s leading private equity firm, has raised US$800 million in its latest fund - Fund VI. The Fund exceeded the firm’s initial target despite challenging global financial markets.
Fund VI secured blue chip investors, expanding Ethos' investor base geographically and by investor type. The investor base spans four continents, and includes more corporate pension and sovereign wealth funds, and fund of funds, than in Ethos' prior fund.
“We are delighted to have exceeded our fundraise target. The amount raised is testament to Ethos' global reach and local expertise,” says Andre Roux, Ethos CEO. “The fundraising market has been tough. Investors are constrained. They are looking beyond the developed markets for pockets of growth and have identified South Africa as an investment opportunity. Due to its proximity, investors also recognise South Africa's potential as a gateway into sub-Saharan Africa. Our investors believe that Ethos has the expertise to deliver on these prospects."
Fund VI's investment strategy will focus on investing alongside experienced management teams into medium-to-large businesses.
“Ethos has a disciplined investment strategy: we have over 25 years of successful investment history in over 100 deals. Investors recognise that long-term value can only be created by active managers, with a commitment to building better, more sustainable businesses,” Roux comments.
The Fund is being deployed, predominantly in South Africa and selectively into sub-Saharan Africa. It has already made two investments: Kevro and Waco. The prospective investment pipeline is healthy.
"Ethos anticipates a busy year ahead, due in no small part to the concurrent deal making in Fund VI and maturing Fund V portfolio," added Ngalaah Chuphi, Head of Investor Relations, and sub-Saharan investing. "Our team is actively pursuing multiple opportunities. We are very much open for business"
Ethos is an independent owner-managed fund manager, with a focus on control and growth investing. It takes an active ownership role in its portfolio companies and has developed a time-tested, value adding strategy that has proven to deliver outstanding results across economic cycles.