As set out in the Quarterly update released by Ethos Capital on the Stock Exchange News Service on 14 October, 2016, the Ethos Mid Market Fund I has achieved a first close on 17 November, 2016. Ethos Capital is one of the first close investors with a commitment of R550 million (with an intended total commitment on final close of R900 million).
The Ethos Mid Market Fund I has also received the requisite approvals for the acquisition of certain BEE assets from Ethos Fund VI and completion is expected to occur by mid-December, 2016. The assets acquired include a 15% stake in Autozone and Twinsaver and a 10% stake in Eazi Access, for a total upfront consideration by the Fund of R361 million.
The Ethos Mezzanine Partners Fund 3 was formally launched on 15 November, 2016. The Ethos Capital commitment to this Fund is intended to be R320 million with a targeted date for first close of 31 March, 2017.
In addition, Ethos Capital has acquired a secondary interest in Ethos Fund VI. The interest acquired is a US$10.0 million commitment to the Fund (c.1.4% interest) of which the current net invested capital (including unfunded guarantees) is US$5.7 million. The Board will continue to explore other secondary transactions in respect of Ethos Fund VI.
Post the first close of the Ethos Mid Market Fund I, the Fund’s acquisition of the BEE assets and the secondary transaction, Ethos Capital has total commitments of approximately 39% of its last reported Net Asset Value (“NAV”) and net invested capital (including unfunded guarantees) of approximately 21% of NAV.
RAND MERCHANT BANK (A division of FirstRand Bank Limited)