South African-based Capitalworks gathered more than ZAR 2.7 billion for its Private Equity Fund 2 in six months. The amount raised primarily came from international investors. Capitalworks said these funds are intended for investments in the healthcare, education, financial services, and consumer goods sectors within South Africa. The company is managing a total of over ZAR 5 billion of third-party assets. Around two-thirds of its most recent investors included large charities, family funds, and institutional investors from around the world.
What usually takes private equity managers to raise in two to three years, Capitalworks was able to do in half a year, said Co-founder and Chairman Chad Smart. He added that despite the gloomy outlook in the short-term, investors still believed in the growth opportunities South Africa provided in the long-run. South African Venture Capital and Private Equity Association Chief Executive Erika van der Merwe also said there is a worldwide demand for institutional investors to put money in Africa.
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