Pamodzi starts Africa’s largest private equity fund

Pamodzi starts Africa’s largest private equity fund

JOHANNESBURG – South African investment firm Pamodzi Investment Holdings has launched Africa’s biggest private equity fund, the US$1,3 billion (N$9,1 billion) Pamodzi Resources Fund, it said on Friday.

Pamodzi, a prominent black-owned investment group, said the fund is supported by a consortium of US investors including affiliates of American Metals & Coal International Inc (AMCI) – a leading international energy and resources sector investor. “International support for the fund …is an overwhelming vote of confidence in the future of South Africa and sub-Saharan Africa.It is also further evidence of our proven ability to attract long-term foreign direct investments to South Africa,” said Pamodzi Chief Executive Officer Ndaba Ntsele.The PRF fund will focus on high-return investment opportunities in the resource and resource-related sectors, primarily in South Africa and across sub-Saharan Africa.”The PRF enables us to diversify our investments into resource opportunities in sub-Saharan Africa that offer the highest sustainable returns.This complements our traditional private equity business and provides us with a diversified, risk-acceptable yet lucrative investment footprint,” Ntsele said.Previously Africa’s biggest private equity fund was Brait SA’s US$880 million Brait Fund IV.Private equity activity in South Africa has risen sharply in the past couple of years although private equity takeovers have mainly been in the retail sector.The country’s largest fashion retailer Edcon was bought out by US firm Bain Capital LLC for US$3,5 billion, South Africa’s biggest private equity deal yet.Nampa-Reuters”International support for the fund …is an overwhelming vote of confidence in the future of South Africa and sub-Saharan Africa.It is also further evidence of our proven ability to attract long-term foreign direct investments to South Africa,” said Pamodzi Chief Executive Officer Ndaba Ntsele.The PRF fund will focus on high-return investment opportunities in the resource and resource-related sectors, primarily in South Africa and across sub-Saharan Africa.”The PRF enables us to diversify our investments into resource opportunities in sub-Saharan Africa that offer the highest sustainable returns.This complements our traditional private equity business and provides us with a diversified, risk-acceptable yet lucrative investment footprint,” Ntsele said.Previously Africa’s biggest private equity fund was Brait SA’s US$880 million Brait Fund IV.Private equity activity in South Africa has risen sharply in the past couple of years although private equity takeovers have mainly been in the retail sector.The country’s largest fashion retailer Edcon was bought out by US firm Bain Capital LLC for US$3,5 billion, South Africa’s biggest private equity deal yet.Nampa-Reuters

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