AlternativeInvestmentsReview2017

ten-year return from private equity outperformed the 12.6 percent delivered by the FTSE/ JSE All Share Total Return Index (ALSI TRI) over the same period.

He points out that while South Africa continues to exhibit sluggish levels of growth, there are certain industries which are ripe with opportunity for private equity capital in 2017.

These for example include: renewable energy; food (there has been strong growth displayed by certain crops over the past four years; namely Canola at 33 percent, soft citrus 33 percent, and lemons percent, and macadamia nuts, where South Africa is now the world’s largest producer); and the film industry in the Western Cape.

“This film industry not only generates employment while earning foreign exchange, but international broadcast content also promotes and showcases the country – ultimately having a positive impact on tourism.

“Through its long value chain, the sector has created more than 35 000 jobs in the province over the past three years and continues to contribute favourably to the economy,” says Boynton.

In its Direct Investments business, OMAI has invested in many of the top private equity deals (by value) in South Africa, including: Pepkor, Life Healthcare, Actom, Idwala, Tourvest, Libstar, Shanduka and Primedia. It also manages a range of South African, African and internationally focused fund of funds.

Its fund of funds range invests in underlying private equity funds managed by reputable, independent private equity managers with proven track records and unique investment strategies.

In its third category of Alternative Investment, OMAI manages in excess of R12bn across a range of funds that provide investors with commercially acceptable returns while addressing the gaps in social infrastructure, primarily in affordable housing and quality education.

Its Housing Impact Fund finances ‘affordable’ homes for sale or rent and provides housing loans and rental accommodation for families and students, aiming to fill the gap between government-provided housing and those with access to home loans.