Nov 21, 2022

The Rohatyn Group said it will acquire South Africa’s Ethos Private Equity to help the US investment firm expand on the continent. Author of the article: Commercial properties, residential buildings and skyscraper offices on the skyline viewed from a rooftop bar in Johannesburg, South Africa, on Thursday, May 21, 2021. Traders raised bets that South Africa's central bank will tighten policy this year after inflation accelerated more than expected, resulting in a negative real interest rate for the first time in more than five years. Photographer: Guillem Sartorio/Bloomberg Photo by Guillem Sartorio /Bloomberg Article content (Bloomberg) — The Rohatyn Group said it will acquire South Africa’s Ethos Private Equity to help the US investment firm expand on the continent. Advertisement 2 Article content Try refreshing your browser, or Rohatyn Group to Buy Ethos to Create Firm With $8 Billion Assets Back to video The purchase will help the New York-based company create a firm with $8 billion of assets, Stuart MacKenzie, chief executive officer at Ethos, said in an interview. Brait Plc, backed by South African tycoon Christo Wiese, in 2019 hired Ethos to manage its portfolio including UK apparel chain New Look and Virgin Active gyms. MacKenzie didn’t disclose financial details of the acquisition. Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. Email Address Sign Up By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 Thanks for signing up! A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Financial Post Top Stories will soon be in your inbox. We encountered an issue signing you up. Please try again Article content The deal will “essentially result in Ethos acting as the African arm for the Rohatyn group,” MacKenzie said. “Plans include raising private equity and credit funds, as well as forestry, agricultural and infrastructure funds that will include investments in renewable energy assets on the continent.” Africa’s need for funds to finance infrastructure projects is massive. While there are about $2.5 trillion of public works in the pipeline on the continent, many won’t be completed because of lack of funding among other constraints, according to McKinsey & Co. That’s where companies such as Rohatyn can help. The deal will give New York-based Rohatyn access to one of the fastest growing regions in the world, said Nicolas Rohatyn, who started the business in 2002. Ethos, with offices in South Africa, Kenya and London, will continue to manage Brait’s portfolio. The advisory agreement between Brait and Ethos will be ceded to the Rohatyn group. Buyout firm Ethos also took over the management of Ninety One Plc’s Africa private equity funds in 2020, with assets in North, East and Southern Africa. —With assistance from Janice Kew.