| SEGMENTAL
REVIEW |
| PRIVATE
EQUITY (CONTINUED) |
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| Proprietary
Investment Programme |
The portfolio companies within Brait Private Equity's
Proprietary Investment Programme have continued to perform in
accordance with expectation. Brait has US$42 million invested
in the portfolio at 31 March 2006. During the year under review
a further follow on investment was made into Pangea and the
group realised its interests in Dywidag and RMS, Metra Holdings
and Aqua Online.
Brait continues to be highly selective in adding exposure to
its Proprietary Investing Programme targeting special opportunities
in the US$1 million to US$3 million range. |
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| IRR – Brait’s
investment in proprietary investments |
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Sectoral analysis –
Proprietary investments
31 March 2006 (US$42 million) |
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| The aggregate return on Brait's private equity
investing in its funds and proprietary investments (excluding
capital participation) is recorded below: |
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IRR – Total private
equity return from investments in
funds and proprietary programme (weighted average) |
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Sectoral analysis –
Brait’s investment in its funds
and proprietary investments
31 March 2006 (US$86 million) |
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| Braitec |
| The Brait Technology and Innovation Fund I ("Braitec")
is fully invested and, apart from participating in a small Floppy
Sprinkler rights offer, made no significant follow-on investments
during the year under review. The focus of the team was on the
consolidation of the portfolio in difficult markets for small
technology companies and to ensure that as many portfolio companies
as possible start to generate positive cash flows. Websoft,
a provider of software and outsourcing solutions to short-term
insurers and insurance brokers, was sold during the year under
review. A number of realisations have occurred post year-end
which will result in a significant proportion of the remaining
value in the portfolio being returned to investors. |
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| Medu Capital |
| Private equity fund manager Medu Capital, an empowerment
initiative with Brait which has approximately US$40 million
under management, performed well during the year under review.
Medu Capital has concluded six transactions including VitalAire
(respiratory care), Ampaglass (plastics), Capital Outsourcing
(labour broking), Zest (exclusive distributor of WEG electric
motors and drivers), Pepkor (retail) and NCS Resins (producer
of resins). The portfolio has performed exceptionally well,
with most portfolio companies continuing to trade in line with,
or ahead of budget. Medu Capital, having successfully deployed
the majority of committed capital in its first private equity
fund, has commenced with the raising of its second fund, Medu
II. On the strength of a sound portfolio and capable management
team, Medu Capital is seeking capital commitments from domestic
institutions. |
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