Foreigners take over Absa private equity fund

Image courtesy stock.xchnge (KillR-B)

Image courtesy stock.xchnge (KillR-B)

A syndicate led by Boston-based HarbourVest Partners has taken over the Absa Capital Private Equity Fund (ACPE Fund I) in which Barclay’s Africa Group (BAGL) has a 73.37% interest worth R2.3billion.

BAGL made the announcement yesterday without disclosing how much the syndicate paid for the purchase.

“As a consequence of the sale, Absa Capital Private Equity Proprietary Limited (ACPE), a wholly-owned subsidiary of Barclays Africa Group and the Investment Adviser to the General Partner of ACPE Fund I, has been spun off to become a new independent South African private equity fund manager, Rockwood Private Equity,” BAGL said.

It said the BAGL interest in the fund of R2.3billion was the valuation of the fund as it stood on December 31 2012.

The ACPE Fund I was a “fully invested South Africa private equity fund established in 2008”, BAGL said.

Its investments comprised:

  • Bravo Group, a diversified manufacturer of household furniture products and licence holder;
  • EnviroServ, a leading waste management company specialising in industrial and commercial waste management;
  • Kwikspace, the largest and most diverse manufacturer of prefabricated buildings in sub-Saharan Africa;
  • Safripol, a plastic manufacturer and the only producer of high-density polyethylene and one of two producers of polypropylene in South Africa, and
  • Tsebo, a diversified catering, facilities management and cleaning company across Africa.

HarbourVest Partners was invested in venture capital, buyout, mezzanine debt, and other private debt through primary partnerships, secondary purchases and direct co-investments, BAGL said.

Since 1986, HarbourVest has been a leading secondary buyer, acquiring $10 billion of assets in deals across stages, types, vintages and geographies and working with many types of sellers, including financial institutions, government entities, endowments and family offices. It had also “committed more than $25bn to newly formed funds and invested $4bn directly in operating companies”, BAGL said.

The syndicate comprised funds managed by HarbourVest and Coller Capital.




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