Get documents about "Private Equity Funds
Document Sample
Private Equity Funds Private Equit
ty Funds Private Equity Funds
Private Equity Funds Private
s
Old Mutual Equity
Private Multi-Manager Funds
Private Equity Funds 1 & 2
Private Equity Funds Pri
Report for the Quarter Ended March 2009
ty Funds Private Equity Funds
Private Equity Funds Private E
ty Funds Private Equity Funds
Private Equity Funds Private E
Equity Funds Private Equity Funds
Private Equity Funds Private Equi
Private Equity
Page
Introduction 1
Market Overview 2
Old Mutual Multi-Manager Private Equity Fund 1 (OMMMPEF 1) 3-5
Fund Description
Performance Commentary
Overall Portfolio Analysis
Underlying Investment Commentary
Old Mutual Multi-Manager Private Equity Fund 2 (OMMMPEF 2) 6-9
Fund Description
Performance Commentary
Overall Portfolio Analysis
Underlying Investment Commentary
Valuation Principles 10
Glossary of Terms 11 - 12
OMIGSA Private Equity Team 13 - 14
• OMMMPEF 1 & 2 are private equity fund of funds aimed at institutional and retail investors and managed
by OMIGSA Alternative Investments.
• OMMMPEF 2 is currently open for investment.
• Secondary investments are available to large institutional clients.
For more information, or to gain exposure to our funds, please contact:
Mark Gevers Kevin French Mike van Heerden
Head, Private Equity Private Equity Business Development Head, Retail Sales
mgevers@omigsa.com kfrench@omigsa.com mvanheerden@omigsa.com
(021) 509-3182 (021) 509-4326 (021) 509-5082
Sue Tosh Marinda Nel
Head, Institutional Sales Business Development Manager
stosh@omigsa.com mnel@omigsa.com
(021) 509-5468 (021) 509-2442
Introduction
Mark Gevers
Dear Private Equity Investor, for new investment, and where the full commitment being
We are now through the first quarter and well into 2009. After a warehoused by Old Mutual has not yet been acquired by the
torrid 2008 on the back of the global credit crisis, 2009 began in OMMMPEF2.
a similar vein with equity markets struggling locally and abroad OMMMPEF2’s holdings in Lereko Metier Capital Growth Fund 1 and
as investors continued to lack confidence. This negativity and its CapitalWorks Fund 1 were valued on this rolled-up cost basis up
effect on valuations have impacted on unlisted company values to 31 December 2008. A consequence of the market volatility
through the listed comparative multiples used in the quarterly
experienced during the last quarter of 2008, was that the rolled-
valuations.
up cost value as at 31 December 2008 significantly exceeded the
underlying market value. In light of this, as well as the increasing
Q1 2009 Performance
maturity of these funds, the price of purchasing additional interests
Both Old Mutual Multi-Manager Private Equity Funds 1 and 2 from Old Mutual has subsequently been renegotiated. Future
delivered negative returns for the first quarter of 2009. The short- purchases of interests in Lereko Metier Capital Growth Fund 1 and
term results are disappointing, but seen in context of the markets, CapitalWorks Fund 1 will now take place at market value, and
the funds’ age and the long-term nature of private equity, we therefore with effect from 31 March 2009 these funds are held at
remain confident in the funds’ design to deliver strong real returns market value in the OMMMPEF2. This has resulted in a once-off
in the long term.
write-down in value over the quarter under review. All of the
underlying private equity funds in the OMMMPEF2 are now held
at market value.
Since Inception
Q1 2009 1 year (annualised)
Other impacts on valuations
26.0%
OMMMPEF1 -5.7% 0.9% Other material impacts on the underlying companies (discussed
(35 months)
in more detail later in the report) were the effect on our holdings
-17.0% in financial services and resource-related industries as commodity
OMMMPEF2 -22.6% -31.8%
(18 months) prices dropped dramatically and sentiment towards banks in
FTSE/JSE All Share particular became extremely negative. The weak global commodity
-4.2% -28.6%
Index (ALSI) prices affected Reclamation, Shanduka (exposed to iron ore, steel
FTSE/JSE Industrial and coal) and York Timber particularly, while the negative sentiment
-9.3% -18.7% around banks impacted on the valuations of Oceanic Bank and
Index (INDI)
Shanduka (with holdings in Standard Bank, Alexander Forbes and
Under/
Outperformance: -1.5% 29.4% 24.3% Liberty Group). At the time of writing, we have seen improvements
OMMMPEF1 vs. ALSI in both bank valuations and global commodity prices.
Under/
Outperformance: -18.4% -3.3% 3.2% Looking ahead
OMMMPEF2 vs. ALSI The valuations of both funds I and II have been negatively impacted
* UPF (untaxed) basis, net of fees by weaker global and local equity markets, as listed proxies are
Source: OMIGSA
used to value investee companies. The economic environment,
both locally and globally, is also still mired in uncertainty.
Old Mutual Multi-Manager Private Equity Fund 1 (OMMMPEF1)
It is, however, in these times that private equity as an asset class,
OMMMPEF1 had a negative 5.7% return for the quarter. The long-
and particularly the private equity business model, comes to the
term performance of the fund remains excellent, and with one
fore. The managers that the products are invested into are at
month before it reaches its three-year milestone, the OMMMPEF1
present spending the vast majority of their time working closely
has delivered 26% per year since inception, which is 24.3% per
with management to ensure that the investee companies are
year ahead of the FTSE/JSE ALSI over the same period.
adequately capitalised and properly equipped and managed to
Old Mutual Multi-Manager Private Equity Fund 2 (OMMMPEF2) successfully operate through the tough economic environment.
OMMMPEF2 had a negative 22.6% return for the quarter. Since We are confident that this active, hands-on approach, combined
inception it has had a negative 17% return, outperforming the with the quality of the underlying managers and investee companies,
FTSE/JSE ALSI by 3.2% over this period. The main contributors will ensure that the portfolio of companies will emerge from these
to the negative performance for the quarter were the internal re- uncertain and difficult times intact, and stronger than before.
pricing of both Lereko Metier Capital Growth Fund 1 and CapitalWorks
Fund 1, and diminutions in value of a number of the investee As mentioned in our September 2008 quarterly report, history has
companies in the collective portfolio. Details on these funds are shown that private equity vintages that follow periods of economic
set out in the underlying investment commentary later in the stress produce some of the best long-term returns. Given this and
report. that OMMMPEF2 is still open for investment, we believe the current
valuations represent a very attractive buying opportunity for
Marking to Market of Lereko Metier Capital Growth Fund 1 investors.
and CapitalWorks Fund 1
Our private equity funds remain positioned to deliver the long-term
In accordance with international private equity valuation guidelines, returns expected of good private equity investments. We trust
underlying assets in the OMMMPEF2 are valued at market value. that the detail covered in this report helps illustrate the quality of
The exception to this arises in the case of certain underlying private the investments, both in the underlying investee companies and
equity funds, to which Old Mutual has made commitments and the composition and management thereof by our team.
warehoused the initial draw-downs, on behalf of potential OMMMPEF2
investors. OMMMPEF2 has the right to acquire these warehoused
interests. Acquisitions of such interests are priced, and subsequently Kind regards
valued, at Old Mutual’s original cost rolled up at prime to the date Mark Gevers
of acquisition or valuation. This valuation method applies only Head: Private Equity
during the limited period in which the OMMMPEF2 remains open OMIGSA Alternative Investments
Page 1
Market Overview – Q1 2009
The Global economy Following the two 100-basis point rate cuts by the Reserve Bank
The global downturn continued to spread in the first quarter via in April and May, the easing cycle in local interest rates is nearing
a broad-based slump in consumer demand and private expansion an end. At the time of writing, markets seem to be predicting a
plans, a sharp contraction in global trade and steeply lower further 50-100bp easing later in the year, and had rallied further
commodity prices. With the world still firmly in the grip of recession, since the end of the quarter.
global growth forecasts for 2009 and 2010 have been slashed Manufacturing production growth Machinery imports in US$’s
10 2500
further and the International Monetary Fund (IMF) expects global
Gross Domestic Product (GDP) to contract by about 1% in 2009,
2000
with only a moderate recovery taking hold in 2010. 5
1500
Given this global economic outlook, with risks skewed to the
0
downside in the short term, policymakers have intensified stimulus
1000
efforts: interest rates have been lowered further, more fiscal
support packages have been announced, and some central banks -5
500
are lending direct support to borrowers who are constrained by Collapse points to weak
still-frozen credit markets. private investment activity
-10 0
90 94 98 02 06 10 90 94 98 02 06 10
Markets rally on hopes of economic stabilization Source: OMIGSA (Iris)
The poor economic data, ongoing concerns about the global banking
International Private Equity – USA
system and slumping corporate profits caused a sharp sell-off of
equities around the world during January and February. Subsequent The final performance figures for 2008 from the National Venture
months, however, have seen a relatively strong rally, albeit from Capital Association in the US were released recently. As expected,
heavily oversold levels, as aggressive policy action and some the one-year numbers were negative, but the longer-term numbers
hopeful signs that the pace of the economic downturn may be illustrate the long-term strength of private equity. Despite negative
moderating, drew investors back into equities. We expect 2009 returns in 2008, private equity continues to outperform listed
to be a year of two halves: a deep slump during the first half, equity over all periods.
followed by stabilization and possibly even a moderate recovery
in the second.
National Returns to 31 December 2008
Venture Capital
16000 90
Dow Jones Index USA manufacturing Assoc (USA) 1yr 3yr 5yr 10yr 20yr
new orders 80
14000 All Venture
-20.9% 4.2% 6.4% 15.5% 17.0%
(Private Equity)
12000 60
NASDAQ -38.1% -10.3% -4.6% -3.2% 7.3%
10000 40 S&P 500 -36.1% -10.0% -4.0% -3.0% 6.1%
Below 50 denotes
8000
contraction Future prospects
20
6000 04 10 As private equity managers, our priority remains the achievement
06 08 04 06 08
Source: OMIGSA (Iris) of long-term real returns for our investors through investing in
diversified portfolios of quality companies. Our portfolio companies
The South African economy & markets
remain focused on growing the intrinsic value of their businesses
Local 2009 growth prospects are weak due to the global slump through prudent active management. While the challenges of the
and intensifying local demand weakness. South Africa’s GDP economic slowdown are real in the short term, the long-term
contracted by a shocking 6.4% (q/q annualized) in the first quarter business case for the companies remains intact. We believe that
of 2009, confirming an official recession. Considerable weakness the private equity business model is most effective in handling
remains in key sectors such as mining, manufacturing and electricity the challenge of the economic slowdown because management
production, pointing to another possible decline in GDP in the and owners are able to adapt and implement strategies immediately.
second quarter of 2009 as well. The global slump poses a serious Our funds have a bias towards cash retail and South African and
challenge to exporters, as does the stronger rand, and companies African infrastructure growth, which will remain long-term growth
appear to be postponing or scrapping expansion plans given the areas in the Southern African economy as the emerging middle
fall-off in demand and extreme mid-term uncertainty. We have class continues to grow and the massive government investment
seen the impact of this on the listed equity markets in the first in infrastructure unfolds.
quarter with industrial and financial indices falling 9.3% and 7%,
respectively. While global demand for private equity investment reduced the
last year, there appears to be some early signs of appetite for
Banks have tightened their lending standards, slowing credit emerging market, especially African, private equity investments.
extension sharply despite lower interest rates. GDP for the full We expect developed economies to take longer to overcome the
2009 calendar year is now expected to contract by at least half a effects of the current economic slowdown than emerging economies
percent, with the risks to this forecast skewed to the downside. like Africa. Most African countries had little exposure to the toxic
The outlook for consumers is a little rosier. Lower interest rates, assets of the credit crunch, while many African countries have
a general slowdown in inflation and recent tax cuts will lend support sizeable infrastructure developments to complete. These two facts
to consumption, but wide-spread layoffs because of the economic provide positive impetus to the economies in which our investee
slowdown remain a risk. companies operate.
Page 2
Old Mutual Multi-Manager Private Equity Fund 1
Quarterly Report for the quarter ended 31 March 2009
I. FUND DESCRIPTION 4. Capital Africa Steel
5. Medu Capital
Inception date: April 2006
6. Nature’s Choice
Fund term: 10 years
7. Buildmax
Performance objective: CPI + 10%
Ethos Fund V
Fund Objective: The fund is designed to deliver real returns in 1. Plumblink
excess of its benchmark over the long term, through diversified
exposure to experienced private equity managers who invest 2. Alexander Forbes
in companies in different sectors with different vintages. 3. Transaction Capital
Fund Composition: OMMMPEF 1 is a private equity fund of funds 4. Moresport
invested in three underlying private equity funds:
5. Oceanic Bank Nigeria
- OMIGSA Private Equity Fund 1
- Brait Fund IV 6. Tiger Automotive
- Ethos Fund V 7. Brandcorp
Each of these funds, in turn, has invested in several underlying 8. House of Busby
private equity transactions. The below charts summarise these
9. Idwala Industrial Holdings
holdings.
UNDERLYING FUND SPLIT (by value) III. PERFORMANCE COMMENTARY
As at 31 March 2009
Based on the 31 March 2009 untaxed unit price of R196.14,
Ethos Fund V (12.0%)
OMMMPEF 1 has delivered a net return of -5.7% * for the
Brait Fund IV (6.9%)
quarter ended 31 March 2009, 0.9%* for the 12-month period
ended 31 March 2009, and a compound annual return of 26.0%*
since inception (35 months) to 31 March 2009.
The quarter under review has seen a general decline in the
OMIGSA Fund I (81.1%)
valuations of a large portion of the underlying investee companies.
This can be attributed to the weakness of the listed equity
II. INVESTMENTS PER FUND MANAGER markets (and the consequent feed-through to unlisted valuations
as multiples from listed proxies are used in the valuation
OMIGSA Fund I process) as well as relatively challenging earnings and growth
visibility in underlying investee companies due to general global
1. Life Healthcare
and local economic uncertainty.
2. Metcash
However, it is in exactly this challenging environment that
3. Pepkor
Private Equity as a business model comes to the fore as active
4. Savcio
private equity managers work closely with the businesses they
5. Brait-Sitogo own to ensure they are able to trade through the tough times.
Currently we have seen the private equity managers in our
Brait Fund IV
products dedicating the majority of their time to ensuring the
1. Premier Foods
existing underlying businesses are well capitalised and
2. Consol appropriately equipped and managed to overcome the challenges
posed by this environment.
3. Primedia
Page 3
Old Mutual Multi-Manager Private Equity Fund 1
Quarterly Report for the quarter ended 31 March 2009
IV. OVERALL PORTFOLIO ANALYSIS OMMMPEF 1 returns to 31.03.2009
by tax class
1. Funding Facility
30%
CPF
To date, 29.9% of the fund has been funded via utilisation 26.0
IPF
of the funding facility. As Brait Fund IV and Ethos Fund V 25% 23.9
UPF 21.7
complete their investment programmes, any surplus and 20%
investee returned cash residing within the product as well
15%
as the undrawn funding facility will be used in exposing
investors to additional private equity assets, without requiring 10%
investors to invest further capital.
5%
2. The table below depicts the OMMMPEF 1’s targeted long- 1.0
0.3
0.9
0%
term portfolio weighting and current actual percentage
invested by the manager. -5%
-5.8 -6.2 -5.7
-10%
Targeted OMMMPEF 1 3 months 12 months 35 months annualised
long-term market value
portfolio split as at Source: OMIGSA
Return performance is based on the untaxed, but after performance fee
Portfolio weighting 31.03.2009
accrual unit price, reflecting a pre-taxed investment position whereas the
OMIGSA Private Equity proxy returns are before potential investment costs and fees.
40% 81%
Fund 1
Brait Fund IV 30% 7%
Ethos Fund V 30% 12%
OMMMPEF 1 Comparative returns to
3. The sectoral spread analysis depicted below reflects a large 31.03.2009
weighting to Consumer Services, mainly retail, which is
30%
represented by assets such as Pepkor, Moresport and Tiger JSE Industrial 26.0
JSE Small Cap Index
Auto; Industrials represented by assets such as Savcio and 20.0
20%
JSE All Share
18.6
Consol; Financial Services comprising assets such as CPI + 10%
UPF
Alexander Forbes, Brait-Sitogo and Oceanic Bank; and
10%
Healthcare represented by Life Healthcare. 5.2
3.4
0.9 1.6
0.5
OMMMPEF 1 exposure by sector 0%
-4.2
Financials (4%) -6.4 -5.7
-10%
-9.3
Healthcare (27%) -20% -18.7
Consumer Services -
Retail (49%)
-30% -28.3 -28.6
Basic Materials - 3 months 12 months 35 months annualised
Industrial Metals
(3%) Source: OMIGSA
Industrials (11%) Return performance is based on the untaxed, but after performance fee
accrual unit price, reflecting a pre-taxed investment position whereas the
Consumer Goods & Services (6%)
proxy returns are before potential investment costs and fees.
4. Returns Analysis
As shown below, OMMMPEF 1’s net annualised return since
inception of 26% is an appropriate indicator of the portfolio’s
* This return performance is based on the untaxed, but after fee accrual unit price, reflecting a pre-
performance against its proxy group returns. The JSE All taxed investment position. Such performance varies on a post-tax basis, dependent on an investor’s
elected tax profile within the Investment Frontiers life wrapper.
Share Index has delivered a 1.64% gross return over the
** It should be noted that notwithstanding amendments to the EVCA valuation guidelines for quoted
equivalent period. instruments, which essentially remove the previous, formulistic approach to providing for the
illiquidity of low volume traded listed stocks, and impose on the valuator more subjective obligations
to assessing the fair value thereof, OMIGSA Private Equity has, in the interests of valuation and
We remain confident that OMMMPEF 1 will outperform
specifically associated pricing consistency and conservatism, elected to retain and apply the historic
against its listed peer group, over the medium term. EVCA valuation rules specific to quoted instruments, unless specific and material reasons justify a
departure therefrom
Page 4
Old Mutual Multi-Manager Private Equity Fund 1
Quarterly Report for the quarter ended 31 March 2009
V. REPORT ON UNDERLYING FUNDS IN wHICH THERE
wERE MATERIAL MOVEMENTS DURING THE THREE
MONTHS TO 31 MARCH 2009
OMIGSA Private Equity Fund I
Life Healthcare
The Life Healthcare valuation has increased during the
quarter, mainly as a result of a fall in local interest rates
and a consequent reduction in the cost of capital used in
the valuation.
Brait Fund IV
Buildmax
As a listed investment in the portfolio, it was negatively
impacted by the de-rating of its share price during the
quarter.
Ethos Fund V
Oceanic Bank International Plc
Oceanic has been valued at its listed market value adjusted
for a marketability discount and the exchange rate.
Notwithstanding Oceanic’s continued quarter-on-quarter
share price decrease, Oceanic’s results show continued
growth in revenues and profits, to comparable periods.
Statutory Information
Old Mutual Investment Group (South Africa) (Pty) Limited is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services Providers
(www.fsb.co.za) to provide intermediary services and advice in terms of the Financial Advisory and Intermediary Services Act 37 of 2002. Old Mutual Investment Group is a
wholly owned subsidiary of Old Mutual (South Africa) Limited. Reg No 1993/003023/07.
The investment portfolios are market-linked. Products may either be policy based or unitised in collective investment schemes. Investors’ rights and obligations are set out in
the relevant contracts. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance
of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance.
Contractual rights and obligations of investors in these funds are subject to contract. Private Equity investments have short term to long term liquidity risks and there are no
guarantees on the investment capital nor performance. The value of the investment may fluctuate as the value of the underlying investments change. Past performance is not
necessarily a guide to future investment performance.
Old Mutual Investment Group (South Africa) (Pty) Limited is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services Providers
(www.fsb.co.za) to provide intermediary services and advice in terms of the FAIS Act 37 of 2002. Old Mutual Investment Group is a wholly owned subsidiary of Old Mutual
(South Africa) Limited. Reg No1993/003023/07.
Source of data: OMIGSA
Private Equity
Page 5
Old Mutual Multi-Manager Private Equity Fund 2
Quarterly Report for the quarter ended 31 March 2009
poised to become further diversified as the newer funds gain
I. FUND DESCRIPTION
investment momentum. The below details each of the investments
that have been made by each of the underlying fund
Inception date: October 2007 managers.
Fund term: 10 years
II. INVESTMENTS PER FUND MANAGER
Performance objective: CPI + 10%
OMIGSA Fund I
1. Life Healthcare
Fund Objective: The Fund is designed to deliver real returns in
2. Metcash
excess of its benchmark over the long term, through diversified
3. Pepkor
exposure to a number of experienced private equity managers
4. Savcio
who invest in a broad range of companies in different sectors
5. Brait-Sitogo
with different vintages.
OMIGSA Fund II
1. Life Healthcare
Fund Composition: OMMMPEF 2 is a private equity fund of funds
2. Consol
currently invested in seven underlying private equity funds:
3. Khathuma II
- OMIGSA Private Equity Fund 1 4. Shanduka Resources
- OMIGSA Private Equity Fund 2 5. Oceanic Bank Nigeria
6. Reclamation Holdings
- Brait Fund IV
7. Tourvest
- Ethos Fund V 8. Alstom SA
- Lereko Metier Fund I 9. Idwala Industrial Holdings
Brait Fund IV
- Actis Fund III
1. Premier Foods
- CapitalWorks Fund I
2. Consol
3. Primedia
Each of these funds, in turn, has invested in several underlying 4. Capital Africa Steel
private equity transactions. The following chart summarises 5. Medu Capital
these holdings. 6. Nature’s Choice
7. Buildmax
UNDERLYING FUND SPLIT (by value) Ethos Fund V
As at 31 March 2009 1. Plumblink
2. Alexander Forbes
ACTIS Emerging Markets (3.9%)
Brait Fund IV (4.8%)
3. Transaction Capital
OMIGSA Fund II (32.1%)
Ethos Fund V (8.3%) 4. Moresport
5. Oceanic Bank Nigeria
Lereko Metier Capital
6. Brandcorp
Growth Fund (17.8%) 7. Tiger Automotive
8. House of Busby
Capital Works (2.7%) 9. Idwala Industrial Holdings
OMIGSA Fund I (30.4%)
Lereko Metier Fund I
1. Libstar
There are six common investments held between OMIGSA Funds 2. Security Platform
1 and 2, Brait Fund IV, Ethos Fund V, Actis Fund III & CapitalWorks 3. Vox Telecoms
Fund I. The effective underlying exposure is therefore to 42 of 4. Southpoint
the total 48 investments. 5. York Timber
6. Zebediela
In total, OMMMPEF 2 already has exposure to six different private 7. Surgical Innovations
equity managers and 42 different underlying transactions, and is 8. Astrapak
Page 6 Private Equity
Old Mutual Multi-Manager Private Equity Fund 2
Quarterly Report for the quarter ended 31 March 2009
As each of Brait Fund IV, Ethos Fund V, LMCGF I, Actis III
ACTIS Fund III
1. Copperbelt Minerals : DRC and CapitalWorks I complete their investment programmes,
2. Paras Pharmaceuticals : India any surplus and investee returned cash residing within the
3. Mo’men Foods : Egypt product, as well as the undrawn funding facility, shall be
4. Alstom SA : South Africa utilised (at a prime interest rate cost) in exposing investors
5. Xiabuxiabu : China to additional private equity assets, without requiring investors
6. 7 Days : China to inject further capital.
7. Ambow : China
2. The table below depicts OMMMPEF 2’s targeted long-term
8. APEC : South East Asia
CapitalWorks Fund I portfolio weighting and current actual percentage invested
1. Pronto Holdings by the manager, at market value.
2. Reclamation Holdings
Targeted OMMMPEF 2
long-term market value
III. PERFORMANCE COMMENTARY portfolio split as at
Portfolio weighting 31.03.2009
Based on the 31 March 2009 untaxed unit price of R0.756,
OMIGSA Private Equity
OMMMPEF 2 has delivered a net return of –22.6%* for the 10% 30.3%
Fund 1
quarter ended 31 March 2009, -31.8%* for the 12-month
OMIGSA Private Equity
period ended 31 March 2009, and a compound annual return 20% 32.1%
Fund 2
of -17.0%* over the 18 months since inception to 31 March
Brait Fund IV 10% 4.8%
2009.
Ethos Fund V 10% 8.3%
The quarter under review has seen a general decline in the
valuations of a large portion of the underlying investee companies. LMCGF I 20% 17.8%
This can be attributed to the weakness of the listed equity
Actis III 15% 4.0%
markets (and the consequent feed-through to unlisted valuations
as multiples from listed proxies are used in the valuation Capital Works I 15% 2.7%
process) as well as relatively challenging earnings and growth
visibility in underlying investee companies due to general global 3. The sectoral spread analysis depicted below reflects a large
and local economic uncertainty.
weighting to Industrials, represented by Savcio, Consol and
However, it is in exactly this challenging environment that Alstom; Consumer Services (mainly retail), which are
Private Equity as a business model comes to the fore as active represented by assets such as Pepkor, Moresport and Tiger
private equity managers work closely with the businesses they Auto; Financial Services, comprising assets such as Alexander
own to ensure they are able to trade through the tough times. Forbes, Brait-Sitogo and Oceanic Bank; Healthcare represented
Currently we have seen the private equity managers in our
by Life Healthcare; and Basic Materials, represented by
products dedicating the majority of their time to ensuring the
Reclamation Holdings, Shanduka Resources, Khathuma
existing underlying businesses are well capitalised and
appropriately equipped and managed to overcome the challenges Investments and York Timber.
posed by this environment.
The main contributors to the quarter’s performance were the
OMMMPEF 2 exposure by sector
internal re-pricing of both Lereko Metier Capital Growth Fund
Consumer Goods (4%)
I and Capital Works I, and dimunitions in value of the investments Telecommunications (2%)
in Oceanic Bank, Shanduka Group and York Timber.
Basic Materials (16%) Industrials (24%)
IV. OVERALL PORTFOLIO ANALYSIS
1. Funding Facility Healthcare (14%)
To date, 43% of the fund has been funded via utilisation of
Financials (4%)
the internal funding facility. The product has a funding Consumer Services (36%)
facility available which is equivalent to 57% of the value of
the fund at 31 March 2009.
Page 7
Old Mutual Multi-Manager Private Equity Fund 2
Quarterly Report for the quarter ended 31 March 2009
4. Returns Analysis * This return performance is based on the untaxed, but after fee accrual unit
price, reflecting a pre-taxed investment position. Such performance varies on
As shown below, OMMMPEF 2’s annualised net return since a post-tax basis, dependent on an investor’s elected tax profile within the
Investment Frontiers life wrapper.
inception of -17% is an appropriate indicator of the portfolio’s
performance against its proxy group returns. The JSE All ** It should be noted that notwithstanding amendments to the EVCA valuation
guidelines for quoted instruments, which essentially remove the previous,
Share Index has delivered a -20.1% gross return over the formulistic approach to providing for the illiquidity of low volume traded listed
equivalent period. stocks, and impose on the valuator more subjective obligations to assessing the
fair value thereof, OMIGSA Private Equity has, in the interests of valuation and
specifically associated pricing consistency and conservatism, elected to retain
We remain confident that OMMMPEF 2 will outperform and apply the historic EVCA valuation rules specific to quoted instruments, unless
against its listed peer group, over the medium term. specific and material reasons justify a departure therefrom.
Five of the six managers still have undrawn commitments V. REPORT ON UNDERLYING FUNDS IN WhICh ThERE
available. This positions the fund well to take advantage of WERE MATERIAL MOVEMENTS DURING ThE ThREE
this rerated and relatively lowly priced investment period MONThS TO 31 MARCh 2009
over the next 18 months.
OMMMPEF2 OMIGSA Private Equity Fund I
Performance Tax class
Life healthcare
CPF IPF UPF
(Corporate) (Individual) (Untaxed) The Life Healthcare valuation has increased during the
quarter, mainly as a result of a fall in local interest rates
01/2009 - 03/2009
-18.3% -21.3% -22.6% and a consequent reduction in the cost of capital used in
(Quarter)
the valuation.
03/2008 - 03/2009
-27.3% -30.2% -31.8%
(12 months)
OMIGSA Private Equity Fund II
10/2007 - 03/2009
Oceanic Bank International Plc
(since inception) -14.4% -16.4% -17.0%
annualised Oceanic has been valued at its listed market value adjusted
Return performance is based on the untaxed, but after performance fee accrual for a marketability discount and the exchange rate.
unit price, reflecting a pre-taxed investment position. Such performance varies on
a post-tax basis, depending on an investor’s elected tax profile within the Investment Notwithstanding Oceanic’s continued quarter-on-quarter
Frontiers life wrapper. share price decrease, Oceanic’s results show continued
growth in revenues and profits, to comparable periods.
OMMMPEF 2 Comparative returns to
31.03.2009 Reclamation holdings
30% Reclamation has been revalued down due to continued slow
JSE All Share
JSE Industrial trading and low pricing in the local and international steel
20.0 20.3
20% JSE Small Cap Index
markets, which are affecting the demand and price for both
CPI + 10%
10%
UPF ferrous and non-ferrous scrap. The company continues to
5.2
manage operations and its balance sheet proactively to
0%
maximize opportunities. Despite these challenges in the
-6.4 short term, the company remains the industry market leader
-10%
-9.3
with a very strong cash position on its balance sheet, which
-15.7
-20% -18.7
-20.1
-17.0
will enable it to weather these stormy times.
-20.6
-22.6
-25.1
-30% -28.6 -28.3 Shanduka Group
-31.8
-40%
The decrease in Shanduka’s valuation for the quarter can
3 Mnths 12 Mnths Since Inception 10/2007
(Annualised) be ascribed to a decrease in the values of a number of its
Source: OMIGSA
underlying investee companies. The share prices of Shanduka’s
Return performance is based on the untaxed, but after performance fee
accrual unit price, reflecting a pre-taxed investment position whereas the
major listed investments, being Standard Bank, Assore and
proxy returns are before potential investment costs and fees. Bidvest, all de-rated during the quarter under review.
Shanduka’s coal assets, being Kangra Coal and Shanduka
Page 8
Old Mutual Multi-Manager Private Equity Fund 2
Quarterly Report for the quarter ended 31 March 2009
Coal, have also decreased in value, due mainly to a decline re-engineering, cost control and working capital management.
in assumed near-term coal prices and a softer worldwide These have all contributed to an increase in the value of
demand for coal. Both the resources and financial sectors Libstar compared to the previous quarter.
are, however, expected to recover in the short-term.
Southpoint
Brait Fund IV The current economic and regulatory environment has
Buildmax provided fertile ground for the university student and young
As a listed investment in the portfolio, it was negatively urban graduate and professional market which Southpoint
impacted by the de-rating of its share price during the serves. Southpoint provides professional management
services to its 29 building portfolio in Braamfontein, Port
quarter.
Eizabeth, Durban, Cape Town and Pretoria. Southpoint’s
turnover was up considerably year-on-year and the performance
Ethos Fund V
for the year to date has been pleasing. These have all
Oceanic Bank International Plc
contributed to an increase in the Southpoint valuation
See OMIGSA Private Equity Fund II. compared to the previous quarter.
Lereko Metier Capital Growth Fund I (LMCGFI) Actis Capital LLP Fund 3
Not withstanding improvement in the quarter; the diminution No material movements during the quarter ended
in the market valuation of the portfolio of the Lereko Metier 31 March 2009:
Growth Fund I has since inception largely been driven by share
price declines experienced in the three PIPE (private in public CapitalWorks Fund 1
enterprise) stocks it holds, namely Vox Telecom, Astrapak and
Reclamation holdings
York Timber. In terms of the Old Mutual valuation policy (and
See OMIGSA Private Equity Fund II.
to cater for the illiquid trading experienced in these shares),
25% illiquidity discounts are applied to all three of these listed
investments.
York Timber
The decline in the York share price during the quarter
indicates that market conditions continue to be tough due
to the slowdown in residential construction (brought about
by the current economic conditions and interest rate/
mortgage availability issues) and a temporary oversupply
of timber caused by surplus logs processed by the
industry.
Libstar
Libstar has shown good defensive properties, with food
demand remaining strong, particularly the value brands.
Improved performance in this period was largely as part of
operational initiatives of pursuing volume growth, product
Statutory Information
Old Mutual Investment Group (South Africa) (Pty) Limited is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services Providers
(www.fsb.co.za) to provide intermediary services and advice in terms of the Financial Advisory and Intermediary Services Act 37 of 2002. Old Mutual Investment Group is a
wholly owned subsidiary of Old Mutual (South Africa) Limited. Reg No 1993/003023/07.
The investment portfolios are market-linked. Products may either be policy based or unitised in collective investment schemes. Investors’ rights and obligations are set out in
the relevant contracts. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance
of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance.
Contractual rights and obligations of investors in these funds are subject to contract. Private Equity investments have short term to long term liquidity risks and there are no
guarantees on the investment capital nor performance. The value of the investment may fluctuate as the value of the underlying investments change. Past performance is not
necessarily a guide to future investment performance.
Old Mutual Investment Group (South Africa) (Pty) Limited is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services Providers
(www.fsb.co.za) to provide intermediary services and advice in terms of the FAIS Act 37 of 2002. Old Mutual Investment Group is a wholly owned subsidiary of Old Mutual
(South Africa) Limited. Reg No1993/003023/07.
Source of data: OMIGSA
Page 9 Private Equity
Valuation Principles
Ensuring prudent, realistic valuations
Although the underlying assets in Private Equity portfolios are not traded daily, their value is measured
on a prudent, consistent yet rigorous basis in accordance with strict international guidelines. What follows
are some of the key principles that are applied to ensure that the investments are prudently valued when
the funds are priced.
Regular & Reasonable - The investments held in the OMMMPE Funds are valued methodically every quarter. The
assets in the underlying OMIGSA portfolios are valued by the OMIGSA Private Equity team. Where third-party managers
manage some of the underlying funds (Brait or Ethos, for example), the OMIGSA Private Equity team reviews the
reasonableness of valuations provided by these underlying managers. Where it is deemed prudent and appropriate,
it may amend these values. The OMIGSA valuation policy has been approved by Old Mutual’s audit committee and is
subject to an annual KPMG audit.
Strict international standards - The methodology applied by our team, as well as the third-party private equity
managers in the fund, is in strict accordance with International Private Equity and Venture Capital Valuation guidelines
which have been adopted by SAVCA (South African Venture Capital Association). The valuations may be subject to
some adjustments to ensure agreed pricing during buy-in periods. The entire OMIGSA PE valuation activity is subject
to a full audit on an annual basis.
Valuations & carried interest - It is essential to note that no carried interest (performance fee) is generated by
virtue of any of the valuations. Carried interest is based solely on cash realised fund performance at both the sub-
manager and multi-manager levels. In other words, performance fees will only be paid when the underlying companies
are realised (sold) and the contractual performance hurdles exceeded.
Fair Value - Old Mutual’s and OMIGSA’s valuation policy for investment assets is to value investments at fair value.
The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s
length transaction. Where possible, fair value is arrived at by using quoted prices or by using market-related rates of
return to discount future cash flows. Where fair value cannot suitably be determined in this manner, the most appropriate
alternative basis is sought to represent the value that would arise from a transaction between a willing buyer and a
willing seller, dealing at arm’s length with adequate information. Depending on the type of asset involved, this value
may be determined on the basis of relative yield, net asset value or cost. Where appropriate, consultation takes place
with external sources such as stockbrokers, banks and property brokers.
Valuation methodologies – In determining the Fair Value of an investment, the valuer should use judgement. This
includes a detailed consideration of the specific terms of the investment which may impact its Fair Value. In this regard,
the valuer has to consider the substance of the investment, which takes preference over the strict legal form. The
valuer exercises judgement to select the valuation methodology that is the most appropriate for a particular investment.
Methodologies are applied consistently from period to period, except where a change would result in better estimates
of Fair Value. These methodologies will include earnings multiples, discounted cash flows & discounted earnings, price
of recent investments and Net Asset Values.
Marketability discounts - Marketability will vary from situation to situation and is a question of judgement. The
marketability discount will usually vary between 10% and 30%, depending on the contractual or otherwise realizability
options per investee.
Fund level pricing and reporting – In order to derive a unit price of the Multi-managed private equity funds
adjustments are made to cater for interest on net portfolio cash, management fees, provision for taxes and performance
fees. Given the sensitivity around certain information OMIGSA provides material, high-level fund performance information
as a supplement to the quarterly valuations.
While private equity by nature is less transparent than listed equity, the valuations are prudent, consistent and rigorous,
thereby ensuring that our investors’ returns are realistic.
Page 10
Glossary of terms
Acquisition - The process of taking over a controlling announces a final closing is it no longer open to new
interest in another company. Acquisition also describes investors.
any deal where the bidder ends up with 50% or more
Debt financing - This is raising money for working
of the company taken over.
capital or capital expenditure through some form of loan.
Advisory board - An advisory board is common among This could be by arranging a bank loan or by selling
smaller companies. It is less formal than the board of bonds, bills or notes (forms of debt) to individuals or
directors. It usually consists of people, chosen by the institutional investors. In return for lending the money,
company founders, whose experience, knowledge and the individuals or institutions become creditors and
influence can benefit the growth and direction of the receive a promise to repay principal plus interest on the
business. The board will meet periodically but does not debt.
have any legal responsibilities in regard to the
Drawdown - When a venture capital firm has decided
company.
where it would like to invest, it will approach its own
Alternative assets - This term describes non-traditional investors in order to draw down the money. The money
asset classes. They include private equity, venture capital, will already have been pledged to the fund but this is
hedge funds and real estate. Alternative assets are the actual act of transferring the money so that it reaches
generally more risky than traditional assets, but they the investment target.
should, in theory, generate higher returns for
Due Diligence - Investing successfully in private equity
investors.
at a fund or company level, involves thorough investigation.
Capital commitment - Every investor in a private As a long-term investment, it is essential to review and
equity fund commits to investing a specified sum of analyse all aspects of the deal before signing. Capabilities
money in the fund partnership over a specified period of the management team, performance record, deal
of time. The fund records this as the limited partnership’s flow, investment strategy and legal issues, are examples
capital commitment. The sum of capital commitments of areas that are fully examined during the due diligence
is equal to the size of the fund. Limited partners and process.
the general partner must make a capital commitment
Exit - Private equity professionals have their eye on the
to participate in the fund.
exit from the moment they first see a business plan. An
Capital distribution - These are the returns that an exit is the means by which a fund is able to realise its
investor in a private equity fund receives. It is the income investment in a company. Exit methods include an initial
and capital realised from investments less expenses and public offering, a trade sale, selling to another private
liabilities. Once a limited partner has had their cost of equity firm or a company buy-back.
investment returned further distributions are actual
Fund of funds - A fund set up to distribute investments
profit. The partnership agreement determines the timing
among a selection of private equity fund managers, who
of distributions to the limited partner. It will also determine
in turn invest the capital directly. Fund of funds are
how profits are divided among the limited partners and
specialist private equity investors and have existing
general partner.
relationships with firms. They may be able to provide
Carried interest - The share of profits that the fund investors with a route to investing in particular funds
manager is due once it has returned the cost of investment that would otherwise be closed to them. Investing in
to investors. Carried interest is normally expressed as fund of funds can also help spread the risk of investing
a percentage of the total profits of the fund. The industry in private equity because they invest the capital in a
norm is 20 per cent. The fund manager will normally variety of funds.
therefore receive 20 per cent of the profits generated
Fund raising - The process by which a private equity
by the fund and distribute the remaining 80 per cent of
firm solicits financial commitments from limited partners
the profits to investors.
for a fund. Firms typically set a target when they begin
Closing - This term can be confusing. If a fund-raising raising the fund and ultimately announce that the fund
firm announces it has reached first or second closing, has closed at a certain amount. This may mean that no
it doesn’t mean that it is not seeking further investment. additional capital will be accepted. But sometimes the
When fund raising, a firm will announce a first closing firms will have multiple interim closings each time they
to release or draw down the money raised so far so that have hit particular targets (first closings, second closings,
it can start investing. A fund may have many closings, etc.) and final closings. The term “cap” is the maximum
but the usual number is around three. Only when a firm amount of capital a firm will accept in its fund.
Page 11
Glossary of terms
General partner - This can refer to the top-ranking In its simplest form, this is a type of loan finance that
partners at a private equity firm as well as the firm sits between equity and secured debt. Because the risk
managing the private equity fund. with mezzanine financing is higher than with senior
Holding period - This is the length of time that an debt, the interest charged by the provider will be higher
investment is held. than that charged by traditional lenders, such as banks.
However, equity provision – through warrants or options
Initial public offering (IPO) - An IPO is the official
– is sometimes incorporated into the deal.
term for ‘going public’. It occurs when a privately held
company lists a proportion of its shares on a stock Portfolio - A private equity firm will invest in several
exchange. IPOs are an exit route for private equity companies, each of which is known as a portfolio company.
firms. The spread of investments into the various target
companies is referred to as the portfolio.
Internal rate of return (IRR) - This is the most
appropriate performance benchmark for private equity Portfolio company – This is one of the companies
investments. In simple terms, it is a time-weighted backed by a private equity firm.
return expressed as a percentage. IRR uses the present Private equity - This refers to the holding of stock in
sum of cash drawdowns (money invested), the present unlisted companies – companies that are not quoted
value of distributions (money returned from investments) on a stock exchange. It includes forms of venture capital
and the current value of unrealised investments. and MBO financing.
Lead investor - The firm or individual that organises Public to private - This is when a quoted (publicly
a round of financing, and usually contributes the largest owned) company is taken into private ownership – more
amount of capital to the deal. recently by private equity firms. Historically, this has
Leveraged buy-out (LBO) - The acquisition of a involved a large company selling one of its divisions. A
company using debt and equity finance. As the word new trend has been for whole companies to be bought
leverage implies, more debt than equity is used to out and subsequently delisted.
finance the purchase, e.g. 90 per cent debt to ten per Recapitalisation - This refers to a change in the way
cent equity. a company is financed. It is the result of an injection of
Limited partners - Institutions or individuals that capital, either through raising debt or equity.
contribute capital to a private equity fund. LPs typically Secondaries - The term for the market for interests
include pension funds, insurance companies, asset
in private equity limited partnerships from the original
management firms and fund of funds investors.
investors, who are seeking liquidity of their investment
Management buy-out (MBO) - A private equity firm before the limited partnership terminates. An original
will often provide finance to enable current operating investor might want to sell its stake in a private equity
management to acquire or to buy at least 50 per cent firm for different reasons: they need liquidity, they have
of the business they manage. In return, the private changed investment strategy or focus, or need to re-
equity firm usually receives a stake in the business. balance their portfolio. The main advantage for investors
This is one of the least risky types of private equity looking at secondaries is that they can invest in private
investment because the company is already established equity funds over a shorter period than they could with
and the managers running it know the business - and primaries.
the market it operates in - extremely well.
Syndication - The sharing of deals between two or
Management fee - This is the annual fee paid to the more investors, normally with one firm serving as the
general partner. It is typically a percentage of limited lead investor. Investing together allows venture capitalists
partner commitments to the fund and is meant to cover to pool resources and share the risk of an investment.
the basic costs of running and administering a fund.
Term sheet - A summary sheet detailing the terms
Management fees tend to run in the 1.5% to 2.5%
and conditions of an investment opportunity.
range, and often scale down in the later years of a
partnership to reflect the GP’s reduced workload. The Venture capital - The term given to early-stage
management fee is not intended to incentivise the investments. There is often confusion surrounding this
investment team - carried interest rewards managers term. Many people use the term “venture capital” very
for performance. loosely and what they actually mean is private equity.
Mezzanine financing - This is the term associated Vintage year - The year in which a private equity fund
with the middle layer of financing in leveraged buy-outs. makes its first investment.
Page 12
THE OMIGSA PRIVATE EQUITY TEAM
“We own and manage businesses on behalf of our clients – not shares.”
Being a member of OMIGSA’s private equity team requires a long-term commitment and true passion for private equity: Our
remuneration is closely linked to the performance of the investments we manage, which can have tenures of up to 10 years.
What better way to ensure we retain our experts, while also aligning client and manager interests?
Unlike most traditional fund managers, we become very closely involved with the companies we invest in, sitting on their boards
(and on their remuneration, audit, investment and transformation committees) and participating in wide-reaching strategic
decisions.
Executives: Our boutique executives determine and execute the overall strategic direction of our investments based on their
extensive industry experience, while also driving partnerships with other key private equity players. They are also responsible
for the management of the boutique as an independent business within OMIGSA, and sit on the boards of several investee
companies.
Executive Director Head of Private Equity
Qualifications: B.Sc (Hons), B.Com Qualifications: B.Com, Dip Acc (Hons),
(Hons), CA (SA), MBA CA (SA)
Years related experience: 20 Years related experience: 18
Board memberships: OMIGSA, Board memberships: Brait South Africa,
Metcash, Mezzanine Partners, Pepkor, Savcio, Mezzanine Partners,
Paul Mark
Tourvest, Shanduka, Worldwide African Consol, Equity Aviation
Boynton Gevers
Investment Holdings
Portfolio managers: The responsibilities of our five portfolio managers span the entire breadth of the private equity investment
process. Initially, they source, process and negotiate deals from inception to final investment by our funds. After investing in the
underlying company, the portfolio manager (PM) becomes involved in the management and oversight of the investment through
active representation on the investee companies’ boards of directors. Such close involvement requires a deep understanding
of the companies’ operations and the broader industries in which they operate.
The investment is typically held for between three and eight years, after which the PM will become actively involved in driving
an investment realization (sale) strategy. The PM must ensure they achieve an optimum exit price that provides the funds with
the maximum return for their stakeholders.
Garth Solomon Ismail Matthews
Qualifications: B.Com, B.Compt (Hons), Qualifications: B.Sc (Hons), M.Sc, Cert
CA (SA) Fin Mgmt
Years related experience: 12 Years related experience: 14
Board memberships: Life Healthcare, Board memberships: Kensani
Metcash, Tourvest Consortium, Kunene Finance, Brait
South Africa, Alstom, Equity Aviation
Jacci Myburgh Quinton Dicks
Qualifications: B.Com, Acc (Hons), CA Qualifications: BA, LLB, Post Grad Dip
(SA) Tax, LLM (Corp Law), MBA
Years related experience: 11 Years related experience: 12
Board memberships: Idwala, Shanduka Board memberships: Consol, Fuel (Pty)
Ltd, Reclamation Holdings
Lance Grayson
Qualifications: B Econ (Hons) (Cum
Laude), CFA
Years related experience: 8
Board memberships: Air Liquide
Page 13
THE OMIGSA PRIVATE EQUITY TEAM
Analysts: Our three analysts research and analyze investment opportunities, including the structuring of investments, from
the conception of an investment idea to the final investment, while providing comprehensive support to the PM responsible
for the investment. The analysts further assist and provide support to the PM throughout the life of the specific investment as
represented in the graphic above.
Farhad Khan Chumani Kula
Qualifications: B.Com (Hons) (Finance) Qualifications: B.BusSc (Fin Hons);
Years related experience: 4 BCom (Acc Hons); CA (SA)
Board memberships: Mezzanine Years related experience: 3
Partners, Tourvest
Mohsin Cajee
Qualifications: B.Compt, B.Com (Hons),
CTA
Years related experience: 3
Investment support specialists: Our investment support specialists perform vital responsibilities for the boutique, including
the complete finance function, as well as the administration of the entire investment portfolio (comprising well over 60 different
underlying companies) from management to reporting.
Wayne Jacobs Collene Goldschmidt
Alternative Investments Finance & Investment Support Specialist
Commercial Manager Qualifications: B.Compt (Hons)
Qualifications: B Com (Hons), CA (SA), Years related experience: 3
CFA
Years related experience: 11
Kevin French
Private Equity Business Development
Qualifications: B Com, Dip FMI (Cum
Laude), CFA
Years related experience: 16
Statutory Information
Old Mutual Investment Group (South Africa) (Pty) Limited is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services Providers
(www.fsb.co.za) to provide intermediary services and advice in terms of the Financial Advisory and Intermediary Services Act 37 of 2002. Old Mutual Investment Group is a
wholly owned subsidiary of Old Mutual (South Africa) Limited. Reg No 1993/003023/07.
The investment portfolios are market-linked. Products may either be policy based or unitised in collective investment schemes. Investors’ rights and obligations are set out in
the relevant contracts. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance
of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance.
Contractual rights and obligations of investors in these funds are subject to contract. Private Equity investments have short term to long term liquidity risks and there are no
guarantees on the investment capital nor performance. The value of the investment may fluctuate as the value of the underlying investments change. Past performance is not
necessarily a guide to future investment performance.
Old Mutual Investment Group (South Africa) (Pty) Limited is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services Providers
(www.fsb.co.za) to provide intermediary services and advice in terms of the FAIS Act 37 of 2002. Old Mutual Investment Group is a wholly owned subsidiary of Old Mutual
(South Africa) Limited. Reg No1993/003023/07.
Source of data: OMIGSA
Private Equity
Page 14
