The Rohatyn Group said it will acquire South Africa’s Ethos Private Equity to help the US investment firm expand on the continent.
The purchase will help the New York-based company create a firm with US$8-billion of assets, Stuart MacKenzie, CEO at Ethos, said in an interview.
Brait, backed by South African tycoon Christo Wiese, in 2019 hired Ethos to manage its portfolio including UK apparel chain New Look and Virgin Active gyms. MacKenzie didn’t disclose financial details of the acquisition.
Ethos’s investments in the technology space include Crossfin Holdings, IHS and Eaton Towers.
The deal will “essentially result in Ethos acting as the African arm for the Rohatyn group”, MacKenzie said. “Plans include raising private equity and credit funds, as well as forestry, agricultural and infrastructure funds that will include investments in renewable energy assets on the continent.”
Africa’s need for funds to finance infrastructure projects is massive. While there are about $2.5-trillion of public works in the pipeline on the continent, many won’t be completed because of lack of funding among other constraints, according to McKinsey & Co. That’s where companies such as Rohatyn can help.
Ceded
The deal will give New York-based Rohatyn access to one of the fastest growing regions in the world, said Nicolas Rohatyn, who started the business in 2002.
Ethos, with offices in South Africa, Kenya and London, will continue to manage Brait’s portfolio. The advisory agreement between Brait and Ethos will be ceded to the Rohatyn group.
Buyout firm Ethos also took over the management of Ninety One’s Africa private equity funds in 2020, with assets in North, East and Southern Africa. — Loni Prinsloo, with Janice Kew, (c) 2022 Bloomberg LP, with additional reporting (c) 2022 NewsCentral Media