PAPE Fund Managers has raised a further R150m from the 27four Black Business Growth Fund (27four BBGF) for its first institutional backed private equity fund – PAPE Fund 3, taking its total committed capital to R680m.

PAPE Fund 3 is targeting the size of R1.2bn before July 2019.

Zuko Kubukeli, CEO and Principal at PAPE, said: “27four’s subscription to PAPE Fund 3 is further endorsement of our investment strategy and the team’s track record, and increases our ability to execute on our strong deal flow.” 

“Our physical presence in Bryanston and Stellenbosch means that we are well-positioned to source attractive proprietary transactions in the mid-market space that have the ability to deliver strong returns to our investors with a focus on transforming the South African economy by promoting significant job creation and wider socio- economic impacts.”

PAPE Fund Managers (PFM) is a black-owned boutique private equity fund manager investing long-term equity risk capital into pedigreed South African mid-cap unlisted enterprises. 

PFM has been raising and managing funds since 2009 and currently continues fundraising for PAPE Fund 3, a new private equity limited liability partnership fund. 

The fund reached its First Closing on July 11 2018 with R530m in capital commitments.

Since first closing, PAPE has already concluded two private equity investment transactions, acquiring a significant minority stake in the South African logistics company, Laser Group, and acquiring an equity position in Singular Systems, a fin-tech and software development company. 

The PAPE team provides growth capital and strategic assistance to take these businesses to the next level, and invests around the country out of offices located in Bryanston and Stellenbosch.

PAPE is an experienced, skilled and well-resourced fund manager and is able to demonstrate a track record of finding deals, making excellent investments and exiting these at high TMB multiples. 

PFM also fully understands and subscribes to best practices in respect to portfolio management, investor liaison, administration, accounting, reporting and compliance.

Rory Ord, Head of Unlisted Investments at 27four, said: “PAPE has a proven track record of delivering growth in businesses in which it invests. We believe that our commitment to the Fund will further facilitate the 27four BBGF’s key objectives of investing in the growth of mid-sized businesses with a strong transformation element that will result in significant job creation that is needed in our country.”