LionPride is a Private Equity and Venture Capital Fund manager offering institutional investors a unique insight into the potential of Venture Capital. Private Equity in South Africa is well established offering better returns than equity investments on the JSE. While liquidity may sometimes seem a challenge, as the investment holding time is approximately 8 years, Limited Partners [institutional investors or large family offices] are comfortable based on the yields, sectors and track record of managers.
LionPride invests in the following impact sectors across all funds:
In Fund I and II, investment was confined to South Africa only, whereas in Fund III this will be open to investment in Sub Saharan Africa.
Fund I
A private equity fund, was funded by the Founders and early shareholders in the Management Company - LionPride Investment Holdings. Investment areas covered:
Fund II - The Agility Fund
A Silicon Valley styled VC fund which focuses on the use of ‘mature technology’ to improve the lives of people living at the bottom of the economic pyramid. This fund took advantage of the tax break offered to investors through s12J of the Income Tax Act. Investments covered:
Fund III - The Alpha Fund
This fund is currently being raised with a first close in 2021. A hybrid of Private Equity and Venture Capital, the plan is to raise $200m for investment in Sub Saharan Africa. High Level Term Sheet below:
LPF III - Indicative Term Sheet
Key Point | Description |
---|---|
Corporate Structure | En-commandite partnership, Where LPF-III is ring fenced and managed by LPF-III Manco which is controlled by LPIH |
Qualifying Investors | Development Finance Institutions, pension funds and corporate ED investors with long term view |
Capitalization/Fund Size | US$200m with first close at US$75 million, thereafter investment at NAV |
Ticket sizes | Minimum USD$10m; maximum 15% of fund size (excluding project finance); Syndication on transactions that exceed maximum ticket sizes |
Contribution by founding team | 1% of the total funding raised by LPF-III |
Life of fund | 10 years |
Investment period per investment | 5 to 7 years |
Permissible investment structure | Direct equity, preference share capital with minimum 60% of funding provided to Investee to be used for growth capital |
Shareholding in investment company | 25% to 49% Control dependent on value position and opportunity available to obtain control position over time |
Sector strategies | Impact sectors of Education, Health Care, Food, Access to Digital and Financial Services, Renewable Energy (listed exposure limited to 10% and only if strategic) |
Threshold returns | IRR: 12.5% gross, Money back: 2-3X |
Management fees | Year 1-2: 2% of capital committed, Year 3 onward: 1.75% of NAV |
Carried interest | 20%, based on growth in invested NAV |
Geographic focus | Pan-African |
Currency of the fund | ZAR or USD negotiated with funder |
LionPride Investment Holdings
Email:
Office Number:
Physical Address:
Jindal Africa Building, 22 Kildoon Road,
Bryanston
Johannesburg 2021
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