| SEGMENTAL
REVIEW |
| PRIVATE
EQUITY (CONTINUED) |
| |
|
| International
overview* |
2005 was the private equity industry's biggest
year yet with almost US$500 billion of private equity firm backed
merger and acquisition activity around the world – an
increase of 18% over the previous 12 months. According to Private
Equity International, 114 large deals of US$1 billion or more
were completed worldwide in 2005 compared to 78 in 2004.
Deals such as the US$15 billion leveraged buy out of Hertz,
the US$11 billion leveraged buy out of Sun Guard Data Systems,
and the US$10 billion offer for Danish telecommunications operator
TDC show that the number of companies too big to be touched
by private equity are shrinking. 2005 was also a record year
for fundraising, with a number of US$10 billion funds being
closed by US buyout firms.A total of US$261 billion was committed
to new private equity funds worldwide, nearly US$100 billion
more than 2004, which was itself a very successful year for
fundraising. In addition, 2005 appears to have been a record
year for distributions from private equity funds back to their
investors. There is no doubt that private equity has become
a major component of economic activity in the US and Western
Europe. |
| |
| (*Source: The Private Equity Annual Review
2005 published by Private Equity International). |
| |
| With respect to emerging markets a large amount
of private equity capital is focusing on China, India, other
Asian markets and Eastern Europe. However, Brait has during
its own Brait IV fundraising process seen an increasing amount
of interest in South Africa from international limited partners.
This is further evidenced by the growing number of LP's visiting
South Africa and media attention from industry publications
– such as Private Equity International which has now incorporated
an award for African private equity firm of the year for the
first time in its prestigious annual global private equity awards.
Brait was voted, by its international peers, as winner of this
inaugural award. |
| |
| |
Number of private equity
M&A deals of more than
US$1 billion, worldwide |
|
 |
| |
| Source: Citigroup Global Markets Inc., The Washington
Post, Private Equity International |
| |
| The track record of the Brait Private Equity funds
reflects a consistently impressive performance over the past
15 years, as highlighted in the table below: |
|
|
|
|
|
|
|
Investment |
|
|
| Fund
name |
Vintage |
type |
Size |
Gross
IRR |
Special
features |
| Brait
I |
1991 |
Later
stage |
ZAR228
million |
29%
Rand |
First
fund managed by an independent private equity manager
in South Africa.Investment programme complete. |
| Brait
II |
1995 |
Later
stage |
US$144
million |
>30%
US$ |
Pioneered
international LPs into South Africa,in partnership with
local LPs. |
| Brait
III |
1999 |
Later
stage |
US$409
million |
>30%
US$ |
South
Africa’s largest independent private equity fund.
|
| Braitec |
1999 |
Early
stage |
ZAR277
million |
Negative
IRR |
– |
| Brait IV |
2006 |
Later stage |
Target |
|
Not yet closed.First closing
in 2005. |
| |
|
|
US$500
million |
– |
|
| Proprietary
Investing |
Ongoing |
Later
stage |
n/a |
>30%
Rand |
Invests
in transactions that fall outside of the investment mandate
of the Brait Private Equity Funds. |
|
|
|
|
|
|
|
| |
| |
| Page
up |
| |
