Investment company Ethos Capital Partners lifted its net asset value (NAV) from R67m to nearly R1.9bn in the 11 months to June, its maiden annual results showed on Thursday.
The company, which listed in August 2016 to give retail investors a taste of private equity investments, recorded market-beating returns from its temporary investments portfolio, which contributed R105.4m of NAV, its permanent portfolio (R18.8m of NAV), and R3.2m in proceeds from the realisation of its investment in parent Ethos’s first midmarket fund.
The temporary investment portfolio, comprising cash and money market investments managed by Ashburton Fund Managers, delivered a net return of 8%, while the unlisted permanent portfolio had a 12% internal rate of return.
Both exceeded the Alexander Forbes Short-Term Fixed Interest benchmark return of 7.2% and the JSE All Share’s 7%.
“NAV uplift has been pleasing,” said Ethos Capital CEO Peter Hayward-Butt.
One fund in Ethos Capital’s underlying portfolio made three acquisitions during the financial year, topping up its interests in motor parts and spares retailer AutoZone, consumer goods business Twinsaver, and equipment provider Eazi Access. Ethos Capital’s share of these deals was placed at R218m.
The fund also participated in telecoms group MTN’s second broad-based black economic empowerment deal, with Ethos Capital’s share at R49.2m.
After the year end, Ethos Capital signed commitments worth R468m, which would bring its total invested capital to R746m, or 40% of its June NAV once executed.
“The board and I are encouraged by new fund and investment opportunities being presented across all Ethos funds,” said Hayward-Butt.