Medu Capital, a majority black owned and managed investment management company founded by Phares Mkwanazi and Ernest January, launched on Tuesday with R250-million of private equity capital earmarked for investment.
Medu Capital is a black enterprise as defined by the guidelines published by the Department of Trade and Industry. Mkwanazi, a chartered accountant and CFA, is a former Gemini Consulting consultant, a non executive director of Fine Chemicals Corporation and executive director of Brait Private Equity. Mkwanazi currently serves on the board of LogicalOptions as a non-executive director. January, a chartered accountant, also boasts significant investment experience having been the divisional investment manager at Anglo American and an executive director at RMB Asset Management prior to founding Medu Capital.
Brait, the leading domestic private equity house, has taken a strategic 49% shareholding in the company and has assisted the company with its capital raising
prior to launch. Mkwanazi believes that Brait’s experience in managing private equity investments will contribute to Medu Capital’s development and growth. Medu Capital is targeting equity investments of between R30-million and R70-million in profitable and established businesses looking for medium to long term Black Economic Empowerment partners. Medu Capital will acquire significant equity interests in companies. The transactions, which could involve both private and public companies, may take the format of management buy-outs, expansion capital and replacement capital to finance the full or partial exit of significant investors.
With financing falling increasingly into the spotlight around BEE transactions, January believes the ability to self-finance its investments will bring enhanced shareholder value to BEE deals. As a majority black owned company, Medu Capital has looked at its own empowerment credentials.
January says: “Black Economic Empowerment is more than just having black shareholders. Medu Capital has looked at employment equity, human resource development and preferential procurement. We have board approval to sponsor university students this year. This sponsorship will be supplemented by mentoring and coaching of the students.
“As a medium to long term significant shareholder in investee companies, Medu Capital is well positioned to play a meaningful role in the transformation of the
investee companies,” explains January.
Medu Capital, in conjunction with the investee company management, will incorporate other components of black economic empowerment such as employment equity, human resource development and preferential procurement.
Medu Capital is capable of doing its own in-depth industry and company analysis,
company valuation and due diligence. Once invested, it will also contribute to the
development and growth of the investee companies in conjunction with management.
John Gnodde, CEO of Brait Private Equity, said Brait was extremely pleased to have
made a strategic investment in Medu Capital and aiding its launch.
“We have worked with both Phares and Ernest for some time now and they have a
proven ability to make smart investments and add value to the investee companies. We think their experience and business model will make Medu Capital an exceptional empowerment partner for many companies,” said Gnodde. – I-Net Bridge