"PENSION funds are realising that some pretty decent odds lie in their
members’ favour if they get an early slice of the rapidly expanding
private equity industry. This is new territory for local funds as
changes to the law only took effect in 2012, although it had been
discussed since 2010, ushering in higher investable limits of 10% from
just 2.5% before. The change brought SA into line with global standards,
but until now the take-up has been rather slow. It is rare to find
funds that invest as much as 10% in private equity; the average is still
below 5%.
A lack of liquidity across African exchanges has certainly left the
door open for rapid expansion of companies in the unlisted space, and
more investors want to get a piece of the action. This month’s 2014 KPMG
and Southern African Venture Capital and Private Equity Association
report says the asset class expanded 17% last year to reach R162.2bn in
funds under management.
The major portion of the funds raised were from pension funds, and in
particular the Government Employees Pension Fund (GEPF), the bulk of
whose assets are managed by the Public Investment Corporation. Almost
60% of the R46.1bn raised in the last two years could be attributed to
the GEPF.
Other big funds are likely to get more involved too — the JSE, which
reached another high this week, is getting a bit too hot for many
portfolio managers to handle."
http://www.bdlive.co.za/companies/2014/06/20/company-comment-nadeson-investments-private-equity-industry
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