PAPE Fund III has achieved final closing with total capital commitments of R950m from local and international institutional investors and private investment entities, as well as a capital investment commitment by the General Partner of the fund.

PAPE Fund III is a generalist private equity fund investing in unlisted, mid-cap SME investments operating predominantly in South Africa.

PAPE Fund Managers is an established, black-owned boutique private equity manager with offices in Bryanston and Stellenbosch.

Zuko Kubukeli, CEO of PAPE Fund Managers, said: “Following a successful first closing in July 2018, and an on-going fund raising campaign into mid-2019, a number of investor groups have subscribed to PAPE Fund III to provide capital for investments into a portfolio of mid-cap businesses that can demonstrate sustainable growth potential.”

“These include the Public Investment Corporation (PIC), which is the biggest asset manager in Africa, the Eskom Pension & Provident Fund, a number of family offices represented by the Rosebank Wealth Group, the Dutch Entrepreneurial Development Bank (FMO), The SA SME Fund, fund-of-fund investor 27four Investment Managers, the Transport Sector Retirement Fund and other high quality institutional investors. These commitments demonstrate investor confidence in the burgeoning mid-cap unlisted sector as well as confidence in PAPE Fund Managers,” he added.

PAPE Fund III will consider investment opportunities across several sectors of the Southern African economy, with specific focus on manufacturing, telecommunications, infrastructure, logistics, food security, tourism and leisure and medical sectors.

Dr Kubukeli said: “We have already concluded two investments in the year since first closing. In late July 2018 PAPE Fund III acquired a significant minority stake in one of the largest express parcel delivery companies in Southern Africa, Laser Group. In October 2018, the fund acquired a minority stake in the owner-managed bespoke fin-tech company, Singular Systems Group.”

“We are currently finalising the legal agreements and conditions precedent to conclude our third portfolio investment transaction, to acquire a majority equity stake in an established automotive conversion business located in Gauteng. The company is black owned and managed by an enterprising CEO. We believe it represents a black industrialist development opportunity that we wish to enhance through our capital investment and shareholding,” he added.

“PAPE Fund Managers has an active pipeline of deals and will work towards deploying the majority of the total committed capital into compelling investible opportunities,” he said.