Venture Capital & Private Equity

Venture Capital & Private Equity

The South African Venture Capital and Private Equity Association (SAVCA)  www.savca.co.za is a member organisation that was established in 1998 to promote the venture capital and private equity asset class in South Africa. Representing more than 90 Fund Managers. Our mission is to contribute to a vibrant industry characterised by :
• Access to Capital to fund Private Equity and Venture Capital Transactions.

Download a file : SAVCA 2014 Review and List of Private Equity Funds

Download

What does SAVCA do ?

The South African Venture Capital and Private Equity Association (SAVCA) is the industry body and public policy advocate for Private Equity and Venture Capital in South Africa, representing about R130 billion in assets under management. SAVCA promotes South African private equity and venture capital by engaging with regulators and legislators on a range of matters affecting the industry, providing relevant and insightful research on aspects of the industry, offering training on private equity and creating meaningful networking opportunities for industry players.  ALSO SEE our FINANCIAL MARKETS Tab under " Private Equity Market ".
 

Does SAVCA itself provide funding of any sort ?

No, SAVCA is a non-profit member association and does not offer any funding to capital seekers. Should you be in search of funding, you are welcome to consult the SAVCA Members’ Directory where our members’ contact details are available.

A  SAVCA  Applicant ( like BRAIT ) must :

1.    Have, as its principal business, the provision of Equity Finance to Unquoted Companies and make its returns mainly through medium to long term capital gain. These activities may include start-up and other early stage, expansion, management buy-out or management buy-in investment which includes ‘equity-type’ return ;
2.  Have experienced executives engaged full-time in Venture Capital and Private Equity Investment ;
3.   Have Venture Capital and Private Equity Funds under management having made at least one investment in Southern Africa and be actively making investments ;  and
4.   Take an active role in helping to build and develop the companies in which it invests.
       Click HERE for more Frequently Asked Questions (FAQ).

BRAIT - Example

www.brait.com 

Business Partners - Example

www.businesspartners.co.za

Private Equity Firm  =  Financial Sponsor

Sponsors and Management

In addition to bringing capital to a deal, financial sponsors are expected to bring a combination of capital markets expertise, various important contacts, strategies for operational improvement, and the experience of owning leveraged companies. As the owners of the company, financial sponsors rarely manage a company directly and are most active in issues relating to the compa-ny's capital structure and balance sheet as well as strategic initiatives including mergers and acquisitions, joint ventures, and management restructurings. The company's CEO and other senior management maintain responsibility for day-to-day operational issues.

Sponsors and other Investors

Various investor classes look to the financial sponsor to generate value in a company as much as the management or operations of the company. In particular, debt providers are willing to extend credit in the form of bank loans, high-yield debt and mezzanine capital based in part on the reputation of and relationship with the financial sponsor.

Additionally, many companies owned by financial sponsors will raise equity in the public markets through an initial public offering or (IPO) as a means of exiting an investment. Public investors will seek to align their own interests as much as possible with those of the financial sponsor by limiting the financial sponsor's ability to sell shares and managing the use of proceeds from the offering. Various studies have been conducted to evaluate the impact of financial sponsor ownership on the performance of IPOs.  CLICK Heading LINK for more details.
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