Edition: July / September 2016
TAP INTO AFRICA’S GROWTH
Private equity investment offers an ideal vehicle,
Mamathuba and Marais . . . everybody gains
The partnership adds private equity to STANLIB’s alternatives offering. It includes Infrastructure, High Yield Credit and Direct Property investment capabilities. For the Agri- Vie founders, the EXEO Capital partnership opens doors to business networks in the more than 10 African countries in which STANLIB is represented as well as a path to strategic diversification into other lucrative investment sectors.
The first US$100m Agri-Vie Fund is invested in 12 food and agribusiness deals across East Africa and the Southern African Development Community. EXEO Capital will manage the Agri-Vie Fund II, expected to launch in mid-2016. EXEO Capital’s choice of the Africa food and agri-business sector as it first investment theme is in line with fundamental growth trends. Growing populations and an expanding middle class, combined with the trend towards urbanisation, are all fuelling demand for food and agricultural products while putting pressure on global food security.
The World Economic Forum predicts that by 2050 a global population of 9bn will demand 70% more food than is consumed today. Meanwhile, Africa is expected to double its population to 2bn by 2050.
If you are invested in pension funds, you may be indirectly benefiting from investments in private equity. Regulation 28 of the Pension Funds Act regulates the allocation of pension fund investments into different asset classes. In 2011, revisions to this regulation allowed for pension fund trustees to allocate up to 10% of assets under management to private equity.
By finding a variety of ways to invest in Africa, investors contribute to Africa’s growth while earning good returns. It’s a win-win scenario all round.
* Mamathuba is the chief investment officer for alternative investments at STANLIB. Marais is the managing partner at EXEO Capital and co-founder of Agri-Vie.