SOUTH AFRICAN UPDATE – The Private Equity Review (2013 Edition)

Executive Summary:

This article provides an update on the legal framework and regulatory developments for fundraising by fund managers from third parties who invest into closed-ended funds domiciled in South Africa.  While private equity fundraising activity and the success rate thereof has not returned to 2006–2007 levels, the relatively expensive level of equities on the Johannesburg Stock Exchange, regulatory acceptance of investment by South African pension funds in private equity funds, the South African government’s renewable energy programme and the remarkable economic growth enjoyed by some sub-Saharan African countries are fuelling renewed interest in private equity investment.  Although South African private equity funds are likely to have increased exposure to sub-Saharan African countries other than South Africa, the current trend is for most South African private equity funds to maintain a primary focus on investment in South Africa.  The full review is posted here