Private Equity

JOHANNESBURG (Capital Markets in Africa) – The Public Investment Corp.’s board of directors offered to resign amid an inquiry into allegations of wrongdoing, throwing the South African manager of more than 2 trillion rand ($150 billion) deeper into crisis. The institution responsible for most South African government worker pension funds has been “destabilized” by a series of claims, including against at least four board members, Chairman Mondli Gungubele said in a letter to Finance Minister Tito Mboweni co-signed by…

LAGOS (Capital Markets in Africa) – Amethis, the investment fund manager dedicated to long-term responsible investments in Africa, is pleased to announce an intermediary closing of its second Pan-African fund, Amethis Fund II, which collected EUR 305mn from a broad range of investors in Europe and Africa, exceeding its initial target of EUR 300mn. Amethis, founded by Luc Rigouzzo and Laurent Demey in partnership with the Edmond de Rothschild Group, manages two other funds, Amethis…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s Department of International Relations and Cooperation expressed “disappointment” with five embassies for telling President Cyril Ramaphosa that foreign investment is at risk because of the country’s failure to prosecute people for government corruption. The decision by the U.S., the U.K., Germany, the Netherlands and Switzerland to send a memorandum to the presidency instead of communicating through the department is a “departure from diplomatic practice,” the department said…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s shrinking risk premia are a sign that investors are increasingly pricing out the chances of a credit downgrade for Africa’s most industrialized economy. Benchmark bond yields, credit default swaps and the nation’s sovereign spread have all declined to multi-month lows, even after Finance Minister Tito Mbowenisaid in October that government debt would peak two years later and at a higher level than previously forecast. But with emerging markets on a roll since the…

JOHANNESBURG (Capital Markets in Africa) – After years on the sidelines, gold producers are suddenly the mining world’s hottest topic as the industry gathers in Cape Town this week. For more than half a decade, gold miners have been stuck in the doldrums, shunned by investors following a string of missteps and bogged down by a stagnant bullion price. Then, in September, a surprise mega deal turned the industry on its head. Barrick Gold Corp.’s $5.4 billion…

JOHANNESBURG (Capital Markets in Africa) – A deepening crisis at South Africa’s biggest money manager is threatening to cast a pall over the economy and throw into doubt potential deals, including the bailout of the nation’s largest clothing retailer. Nine Public Investment Corp. directors quit on Friday, saying the institution overseeing the pension funds of most South African civil servants has entered a “state of paralysis” following misconduct claims against some board members. Those included questionable investments in the…