Capital Growth Fund I
Lereko Metier Capital Growth Fund (LMCGF) was a pioneer in the field of private equity funding. Bringing together the investment franchises of Lereko and Metier, LMCGF I was South Africa's largest ever private equity fund in terms of local institutional commitments. Closed to investors at the end of 2007 with R3.5 billion of capital including debt facilities and co-investing commitments, the fund exceeded targets for mobilising South African capital for private equity. This proved that the model was credible and had the backing of the industry's leading investment names.
The fund invested across eight portfolio companies and has been fully realised. Its portfolio profile is characterised by creative, differentiated and uncontested transactions where we have partnered entrepreneurs with a passion for growth.
Our ambition was to generate market-leading returns, not only in financial terms, but also through active and socially responsible investing. By bringing more than finance to our investments, LMCGF was a preferred partner for investors and entrepreneurs alike.
Capital Growth Fund II
The Metier Capital Growth Fund II (MCGF II) completed its first close in mid-February 2015 and further closings in 2016, raising in excess of R2.9 billion.
The fund's investment theme is premised on obtaining significant exposure to South, Southern and Sub-Saharan Africa and concentrated on mid-cap entrepreneurial businesses requiring growth capital, in sectors which demonstrate emerging market growth potential.
Investments were targeted in sectors including transport and logistics; retail; health; tourism; Fast Moving Consumer Goods; agri-processing; infrastructure services and education. These are sectors set to benefit from demographic trends such as population growth and increased urbanisation, and the accompanying consumer spend from the emerging middle class. Fund investments were also in sectors which were advantageously exposed to the multiplier effects of rising capital spend on infrastructure and increasing intra-regional and international trade.
MCGF II has invested in 8 portfolio companies, with controlling or significant minority private equity holdings, with 82% allocated to South Africa and 18% outside South Africa.
MCGF II investors include South African and international institutional investors and Development Finance Institutions. The Metier team also made its own material financial commitments to the fund.
Capital Growth Fund III
Metier Capital Growth Fund III is targeting Capital Commitments of >$200 million or >R3 billion to deploy in eight to twelve control or significant minority investments in mid-market growth capital transactions in Sub-Saharan Africa.
The Fund builds on the successes demonstrated by an established and experienced investment team in Metier’s two prior capital growth funds and its historical Track Record, with a focus on deploying growth and replacement capital into entrepreneurial businesses that will benefit from Metier’s collaborative partnering style.
The Fund’s investment themes will continue to focus on sectors that will benefit from growth in the emerging-middle income demographic and consumer spending, technological innovations that change the way in which people live, population growth and increasing urbanisation, multiplier effects from continuing investment in infrastructure and increasing intra-regional trade and skills transfer. The Fund’s investment strategy has a geographic focus on specific countries across Sub-Saharan Africa, using its offices in South Africa, Mauritius, Kenya and regional presence in London as hubs from which to access its network, skills and expertise to build scale and to facilitate deal execution and access to financial markets.
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