Author: Southern African Venture Capital and Private Equity Association (SAVCA)
In Southern Africa, the impact and value created through private equity extends far beyond just that of a specific deal’s allocated investment, it is also about positively influencing businesses, the communities connected to these businesses, and their broader economic environment. This is according to the recently launched SAVCA 2017 Case Study Compendium (see here) which highlights how private equity investment is resulting in more sustainable business practices and positive community outcomes.
The publication – comprising of sixteen case studies showcasing successful private equity and venture capital partnerships between fund managers and the businesses in which they invest – underscores the long-term nature of these collaborations and confirms the value add offered to both start-up and established businesses.
Tanya van Lill, CEO of the Southern African Venture Capital and Private Equity Association (SAVCA), says that these case studies confirm that partnerships of this nature represent a great deal more than just monetary investment. “Private equity plays a vital role in corporate governance, job creation, employment equity initiatives, skills programmes, and social upliftment, thus rendering the portfolio company more resilient, more efficient, with healthier governance structures and with an expanded footprint.”
Technology is a recurring theme from the SAVCA 2017 Case Study Compendium, adds van Lill. “Some of these companies have introduced systems to manage their operations more efficiently, while others have introduced new technology to the market. An example of this is seen in the Emfuleni Voerkrale case study, where the sheep feedlot company was backed by IDF Managers in 2015 to acquire a state-of-the-art electronic scale to weigh animals. This allows management to easily access and analyse data on each animal, which has enabled faster and more efficient decision-making.”