Pretoria - The Transport Sector Retirement Fund (TSRF) says its investments in private equity funds seek to address southern Africa’s most pressing challenges, particularly the lack of infrastructure.
“The TSRF is an example of an impact investing fund that fulfils various criteria. The fund invests in businesses that aim to deliver meaningful and positive change in southern Africa. TSRF seeks to invest in private equity funds that drive positive change by addressing southern Africa’s most pressing challenges, such as infrastructure shortages,” said Joe Letswalo, principal officer at TSRF.
The TSRF was the first institutional investor in Heritage Capital, a 100 percent black women-owned and managed private equity firm.
Heritage Capital was established in 2015 and is managed by “passionate and highly skilled” business partners Philile Maphumulo and Xolisile Ntanzi. Heritage Capital has more than R300 million in assets under management.
In 2017, TSRF committed R100 million into Heritage Capital’s maiden fund as an initial investment. An additional R50m was later committed in 2019 to Heritage Capital to increase the investment to R150m.
“We are very proud they are doing well under difficult circumstances. They have even paid us several dividends. That’s a great achievement by a fund established four years ago,” said Letswalo.
Heritage Capital has a portfolio of five companies across various sectors, with a considerable presence in South Africa.
The company has shares in SSEM Mthembu Medical [38%], General Profiling [30%], Aria Technologies [20%], Avis Forklift Centre [82.3%] and Tailifts SA [82.3%].
Maphumulo said Heritage Capital continued to look for potential companies to invest in, mainly in the consumer goods and services sectors, and create more value for its investors while having a positive impact on communities through its investments.
“Heritage Capital is well-positioned to deliver on its long-term strategic goals. Our investment approach is aligned with the objectives of our investors, especially to demonstrate a commitment to responsible investing,” said Maphumulo.
Ntanzi, a partner at Heritage Capital said their investments strive for transformation and creation of sustainable jobs.
“We are honoured to have an investor such as TSRF that focuses on making an impact in southern Africa through its investments. We continuously strive for transformation, the creation of sustainable jobs and improving working conditions within each of our portfolio companies,” she said.
Heritage Capital invests in companies with a minimum EBITDA (earnings, before interest, tax, depreciation, and amortisation) of R15m, “strong growth potential, and capable and passionate management teams”.
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