Capitalworks launches new South African PE fund with backing from IFC and Standard Bank
The fund will target established mid-market companies across sectors including FMCG, logistics, retail, hospitality and tourism.
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Capitalworks today announced the launch of Capitalworks Private Equity Fund IV (CWPE IV), a South African-focused generalist private equity fund targeting total commitments of $350 million.
CWPE IV will continue the strategy pursued through Capitalworks’ predecessor funds by investing in established mid-market companies with strong growth prospects, defensible market positions and the potential to scale. Target sectors include fast-moving consumer goods, industrial services, logistics, retail, hospitality and tourism.
The first close has secured support from a group of local and international institutional investors which include banks, pension funds, family offices, fund of funds and development finance institutions amongst others.
Two notable new investors in CWPE IV include Standard Bank and the International Finance Corporation (IFC).
IFC has committed up to $80 million, comprising a $40 million investment in CWPE IV and a $40 million co-investment envelope.
“South Africa has a well-established private equity market, but the mid-market remains relatively underserved,” said Chad Smart, co-founder of Capitalworks. “We continue to see compelling opportunities to partner with high-quality businesses, support ambitious management teams and build companies with the potential to scale. This first close reflects strong confidence in our platform, our disciplined investment approach and the long-term opportunity in South Africa’s private sector.”
“IFC’s investment in Capitalworks Fund IV underscores our commitment to expanding opportunity through private sector growth in South Africa,” commented Farid Fezoua, IFC’s director of equity, funds, and venture capital. “We see the mid-market as a powerful driver of jobs and resilient local economies, and we’re excited to partner with Capitalworks to unlock its full potential and deliver lasting value.”
Arnold van Wyk, head of investments at Standard Bank, stated: “Standard Bank is proud to support the first close of CWPE IV, reflecting our confidence in Capitalworks as a proven manager with a strong track record of sourcing, executing, and exiting proprietary opportunities in the South African mid-market. Beyond our role as capital partner, we look forward to working closely with the Capitalworks team to support the continued growth of the platform across this vintage.”
The final close of CWPE IV is expected in due course.
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