14 Dec 2016

Business Day
14 DEC 2016

Recently listed private equity vehicle Ethos Capital Partners updated its net asset value (NAV) on Tuesday, after concluding a series of deals and reaping returns on some temporary investments.

Ethos Capital reported a NAV of R9.95 for the four months to November. It listed in August, raising more than R1bn in capital. Since listing, it has committed R550m to founder company Ethos Private Equity’s first Mid Market Buyout Fund, which recently got the go-ahead to buy black economic empowerment assets such as a 15% stake in motor spares provider Autozone and a similar stake in tissue maker Twinsaver. These were acquired from Ethos Fund VI, in which Ethos Capital bought a secondary 1.4% interest for $10m.

Ethos Capital did not respond to requests for comment.

The NAV is trading at a near 10% discount to its share price, which was R9.05 at Tuesday’s close. “[There is] no reason why Ethos Capital shouldn’t attract the usual holding company discount,” said Anthony Sedgwick, portfolio manager at Abax Investments, which holds Ethos Capital shares.

Ethos Capital is structured as a holding company, with investments in four different funds.