Ethos is widely considered to be the most experienced and successful private equity investment team in South Africa.
Founded in 1984, Ethos pioneered South African private equity, concluding the first private equity-led acquisitions in the country.
In 2016, Ethos transitioned into a broader investment firm, managing investments in private equity and credit strategies in South Africa and selectively in sub-Saharan Africa. Furthermore, Ethos also launch Ethos Capital, an investment vehicle listed on the JSE, designed to offer investors long-term capital appreciation by investing in a diversified portfolio of unlisted investments managed by Ethos Private Equity, the largest private equity firm in sub-Saharan Africa.
Ethos seeks to leverage its understanding of the South African and sub-Saharan African markets to target small- to mid-sized companies best positioned to benefit from the region’s unique growth dynamics. As an active investor, Ethos Private Equity has capitalised on its experience of owning businesses across a variety of investment, economic and political cycles to maximise value post-investment and generate superior returns.
In September 2017, Ethos announced that it has reached agreement with RMI Investment Managers (‘RMI’) and Royal Investment Managers (‘RIM’) — together the ‘RMI & RIM Consortium’ — in terms of which, the RMI & RIM Consortium will invest behind Ethos’ growth strategy in a series of transactions that will result in them acquiring a combined stake of up to 30% in the Firm. This transaction includes a vendor-facilitated BEE component that will ensure that 25% of the company continues to be owned by a broad base of historically disadvantaged shareholders (including Black Ethos executives, staff and the Ethos Educational Foundation Trust). Read more about this milestone investment here.
Ethos' key strengths
Ethos' long-term success has been a result of institutionalising a set of core competencies which underpin our investment approach. This approach has been refined to provide a flexible strategy, tailored to investing within the South African and other sub-Saharan African markets.
Growth is a central principle of Ethos' strategy: value is added by actively transforming the strategy, operations and finances of investee businesses, making them "best-in-class". Through pioneering thought leadership, creativity, and innovation, Ethos has developed a long track record of sustainable, superior investor returns.
Ethos represents a unique combination of skill, innovation and stability. The existing partners have a combined 200 years of private equity experience, of which 177 has been at Ethos Private Equity. Ethos Private Equity has invested in 105 acquisitions since 1984 of which 95 have been successfully realised. This unique history has inspired a distinctive approach and driven Ethos Private Equity's success.
Ethos' value proposition includes:
- an established track record and excellence in investing
- a commitment to and alignment with fund investors
- a unified, high-performance culture and commitment to transformation
- its broad origination platform and business networks
- a consistent, disciplined investment process
- its local presence, commitment to, and focus on, sub-Saharan Africa
- a flexible, innovative approach to transactions
- adding value to, and influencing the strategy of, investee companies
- the ability to drive value creation through the investment cycle and optimise exits.