Private Equity Market

Private Equity Market

In finance, Private Equity is an asset class consisting of Equity Securities and Debt in operating companies that are not publicly traded on a Stock Exchange. A Private Equity Investment will generally be made by a Private Equity Firm, a Venture Capital Firm or an Angel Investor.  ALSO SEE our Venture Capital & Private Equity TAB under " FUNDING ".

Private Equity

Private Equity (PE) houses are involved in the purchase and acquisition of shareholdings of listed and unlisted companies. PE firms make these acquisitions by investing the capital they have raised from institutional investors, such as pension and other funds.  See  www.kpmg.co.za 

PE houses create value by investing in shareholdings of companies (both majority and minority positions), active management of these portfolio investments over the medium- to long-term, implementation of value generation ideas within the portfolio companies and then ultimately, the realisation or sale of these companies.

PE houses typically acquire companies which they believe are undervalued by the market and offer value-generation opportunities through company growth, financial and operational restructuring, the sale of assets or the strengthening of management etc. After this enhancement in value is achieved these companies are realised/sold through trade sales, IPOs or sold to other PE houses. 

An Investment that is giving Better Returns than the JSE

CAPE TOWN – Beyond the high profile goings on of JSE-listed companies, is another asset class which over a three to ten year time horizon has delivered better returns to investors than the JSE.   Definition of NAV = Nett Asset Value. A Mutual Fund's price per share or Exchange-Traded Fund's (ETF) per-share value. In both cases, the per-share dollar amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding.

This is SA’s Private-Equity Industry, which has about $14bn invested in mainly South African firms. However, unless investors are buying and delisting a company, or exiting an investment via a JSE listing, the industry tends to operate under the radar.
 
It has delivered Returns of 11%, 21% and 22% over a three, five and ten year time horizon, compared to the 2%, 15% and 17% return of the JSE’s all share index, according to research conducted for the SA Venture Capital and Private Equity Association (SAVCA) by KPMG.
 
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Private Equity

In finance, private equity is an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange.

A private equity investment will generally be made by a Private Equity Firm, a Venture Capital Firm or an Angel Investor. Each of these categories of investor has its own set of goals, preferences and investment strategies; however, all provide working capital to a target company to nurture expansion, new-product development, or restructuring of the company’s operations, management, or ownership.
 
Bloomberg Businessweek has called private equity a rebranding of leveraged buyout firms after the 1980s. Among the most common investment strategies in private equity are : leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. In a typical leveraged buyout transaction, a private equity firm buys majority control of an existing or mature firm. This is distinct from a venture capital or growth capital investment, in which the investors ( typically venture capital firms or angel investors ) invest in young, growing or emerging companies, and rarely obtain majority control.
 
Private equity is also often grouped into a broader category called private capital, generally used to describe capital supporting any long-term, illiquid investment strategy.
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BRAIT  Investment Company      www.brait.com 

Brait invests in primarily privately owned businesses by making long-term investments of significant influence.  Brait is an Investment Company with a Primary Listing on the Euro MTF Market of the Luxemborg Stock Exchange and a Secondary Listing on the JSE.  Brait creates long-term shareholder value for its Public Market Investors.  Click  HERE  for more details.

Christo Wiese is a Major Shareholder of Brait.

Dr Christoffel Hendrik Wiese (72) *
Non-Executive Director ; Date appointed: 04 May 2011
Qualifications: BA LLB, DCom (hc)
Chairman and majority shareholder of Pepkor Holdings Limited, Shoprite Holdings Limited, Tradehold Limited and Invicta Holdings Limited. Former Chairman of the IDC and Tulca (Pty) Limited (trading as Mango – low cost airline). Former director of Primedia, PSG, KWV, Sasol Limited, Sanlam Limited, SA Reserve Bank, BOE Bank Limited, Mettle Limited, Malbak. Served on the Stellenbosch University Council for many years.

Virgin Active Share Sale Halted as Brait  Buys  80 Percent

Virgin Active agreed to be bought by the investment company owned by South African billionaire Christo Wiese for 682 million pounds ($1 billion), prompting the British health-club chain to cancel plans for a share sale. Click the above LINK in Red to read the full Article.
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