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Getting the Deal Through - Private Equity 2013

Private equity transactions in South Africa are as varied as they are in other jurisdictions. Generally, they can be classified into three categories, namely venture capital, development capital and buyouts. Typically, partnerships (usually en commandite or limited liability), trusts and companies are the most common legal structures used as vehicles for private equity investments. In addition, captive funds of financial services players, such as insurers, play an important role in the country's private equity industry. Collective investment scheme structures might sometimes be utilised where it is possible to accommodate the relevant regulatory requirements. Certain investors (for example, pension funds) are entitled to specific and often beneficial tax treatment, in which event the transaction is structured so that gains 'flow' through the investor, so that the fund entity is 'tax-transparent'.

Getting The Deal Through – Private Equity 2012

Private equity transactions in South Africa are as varied as they are in other jurisdictions. Generally, they can be classified into three categories, namely venture capital, development capital and buyouts. Typically, partnerships (usually en commandite or limited liability), trusts and companies are the most common legal structures used as vehicles for private equity investments. In addition, captive funds of financial services players, such as insurers, play an important role in the country's private equity industry.

South Africa – the gateway to private equity investments into Africa

South African can private equity funds are increasingly exploring investment opportunities into the rest of Africa, and in particular sub-Saharan Africa. The reason for this is that the emerging markets have become attractive to South African private equity funds, with large growth capacity for investments in energy, infrastructure and mining. More attractive for investments in Sub-Saharan Africa includes low asset valuations, commitment to economic reforms, a gradually improving legal framework for investors and companies, decline in political conflict and wars in certain regions and its apparent robustness against the world financial crisis and economic recession.

Private Equity: Significant Regulatory Developments

In recognition of South Africa’s economic position in Africa, legislative and policy changes have been adopted by the South Africa government over the period 2010-2011, in order to encourage direct foreign investments including through private equity. The African private equity industry has over the years shown significant growth and resilience when compared to similar industries among emerging and developed markets.

Getting The Deal Through - Private Equity 2011

Getting The Deal Through - Private Equity 2011

RETIREMENT FUNDS INVESTMENT IN PRIVATE EQUITY FUNDS: SOME ISSUES TO CONSIDER

Retirement funds, at least in the United States of America and in Europe, have increased their investment allocation to private equity funds. There is no doubt that retirement funds in South Africa may, in future, increase their allocations to private equity funds. In fact, draft regulation 28 issued by National Treasury on 2 December 2010 acknowledges the need to update the investment channels that retirement funds may invest in. One of the acknowledged investment channels is investment in private equity funds. However there will be some issues for trustees to consider before investing in a private equity fund.

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