Johannesburg - Ethos Private Equity Ltd, South Africa’s oldest buyout firm, is readying the sale of its stake in retirement-fund administrator Alexander Forbes Ltd.
“We are gearing up for the Alex Forbes exit,” Ngalaah Chuphi, a partner at Ethos, said in a Johannesburg interview. “We have done over 100 deals and exited 87 of them for cash.”
Alex Forbes, Africa’s largest such administrator, was acquired for R8.2-billion in 2007 by a group of investors including Ethos and Actis LLP. The deal was one of the investments made by Ethos’ Fund V, which closed in 2006 and was worth R5.5-billion. The fund has nine investments to exit including resources company Idwala Industrial Holdings Ltd.
“We’ve seen a lot of inbound interest from international companies,” Stuart MacKenzie, another Ethos partner in the August 16 interview, said of interest in the Fund V investments.
Alex Forbes said in June it had hired Deutsche Bank AG and Rand Merchant Bank to advise on a potential initial public offering. Ethos is also hunting for new deals with fund VI, worth $800-million, having closed in January.
“We will do 10 to 12 deals on fund VI,” Chuphi said. “Fund VI can do 20 percent direct into Africa. We want to deploy $25-million to $40-million per deal.” - Bloomberg