Three Decades - savca

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SOUTHERN AFRICAN VENTURE CAPITAL AND PRIVATE EQUITY ASSOCIATION

THREE DECADES An account of the rise and establishment of South African private equity

Investing for Growth • Investing for Good

Partnering for Growth Growth is never by mere chance; it is the result of

forces working together.

James Cash Penney

Capitalworks specialises in partnering with management teams and entrepreneurs to build exceptional businesses. As an active private equity investor with more than USD515 million under management, Capitalworks continues to seek new opportunities across a broad spectrum of industries to add to our growing portfolio. Please email [email protected] for further information.

www.capitalworksip.com

Three Decades

An account of the rise and establishment of South African private equity

Contents Acknowledgements Hats off to those who made this publication possible 1 Foreword Dave Stadler, SAVCA Chairman 3

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Tracking the emergence and establishment of South African private equity

Capital camaraderie

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Three decades, visually

Aiming for excellence through exits

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Past and future trends in exits



Regulatory evolution

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Working with a proliferation of legislation and regulation

24 A legal regulatory timeline of South African private equity



The birth of an industry association

A timeline of private equity in South Africa



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LEAD ARTICLE: Three decades

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A chronological list of developments

A move towards the mainstream Institutional investors’ appetite for South African private equity

It’s a people’s industry, after all Private equity’s approach to people, skills and talent

Venture capital endeavours On the intrepid spirit of South African venture capital

An African dream gains substance

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Private equity’s African strategy

Structured for success South African partnership structures for private equity

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A force for good An industry with impact

A seasoned South African LP Q&A with Sbu Luthuli, CEO of the Eskom Pension and Provident Fund

A new voice for institutional investors Limited partners set the tone for partnership agreements

Still banking on private equity Q&A with Clive Howell, Head: Nedbank Capital Private Equity

A brief history of the use of debt in South African private equity Debt multiples and risk appetite in perspective

Aligned interests Remuneration in private equity

The FirstRand group’s contribution to South African private equity A short tribute

Mezzanine funding finds its place A sector emerges within South African private equity

A future for fund of funds Broadening access to private equity

What a difference a few decades make Observations on major changes in three decades

Tricky page Silly stats Trivia

End note Erika van der Merwe, SAVCA CEO

Acknowledgements

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his publication was made possible thanks to the following people and firms who generously gave of their time to speak to us, to provide additional information and to comment on various drafts and sections of the document.

Actis

Harith General Partners

RMB Corvest<