24278 - Ethos Private Equity Fund V

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

24278

Company Name

ETHOS CAPITAL V, LP

Date SPI Disclosed

Jun 28, 2005

Country

South Africa

Industry

other

Projected Board Date

Jul 30, 2005

Status

Active

Sector

Private Equity/Venture Cap Fund - Country

Department

Equity Portfolio Management

Environmental Category

Previous Events

Approved : Oct 18, 2005
Signed : Dec 9, 2005
Invested : Jan 4, 2006

Project Description

Ethos Private Equity Fund V (Ethos V or the Fund) is a private equity fund which will make equity and equity-related investments primarily for control positions in market-leading growth businesses located in South Africa as well as in other African countries. The Fund has a target committed equity capital of up to $500 million. The Fund will be the fifth fund raised and managed by Ethos Private Equity Limited (“Ethos”) which is based in Johannesburg and has a core group of 16 professionals that have worked together since 1985.

IFC intends to invest up to $25 million in Ethos V and will also consider an investment of up to $5 million in Sphere Private Equity Fund I (Sphere I) which is a related fund set up as a joint venture with Ethos V to share deals and the expertise of senior Ethos partners. Sphere I is a Rand-denominated private equity fund with target capital commitments of Rand 600 million (~$100 million) which will be managed by Sphere Holdings (Sphere). Ethos V and Sphere I are fundraising simultaneously for capital commitments in the ratio of 5:1 respectively.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	30.0

Development Impact

The Fund is expected to have several important development impacts, the key ones being:

- Providing financing in the form of equity and debt at attractive pricing to investee companies. The annual private equity survey of Price Waterhouse Coopers in South Africa identifies the lack of financing on attractive terms as a major problem for local industry. Through Ethos V, the Ethos Team will contribute to bridging this financing gap.
- Contribution to regional and pan-African economic development by supporting South African companies that want to pursue expansion into other countries in the Southern Africa region and the rest of Africa. One of the explicit goals of Ethos V is to support the expansion plans of investee companies outside the borders of South Africa.
- Development of local management teams by promoting adoption of international standards of management and corporate governance as well as developing culture of management ownership through management buyouts (as was done at Dunlop Tyres, an investee of Ethos III).

IFC Role:
- Alignment with market leader in South African private equity:

IFC will be acknowledging the strong track record of Ethos by investing in Ethos V. There is also the multiplier effect of the investment in developing the South African private equity market further.
- Promoting adoption of corporate governance in portfolio investments:

By seeking a seat on the Ethos Advisory Board, IFC can promote the adoption of international standards of corporate governance both at the fund level and also at the investee company levels.

- Contribute to expansion of investment scope within and outside South Africa:

Ethos V plans to invest up to 25% of capital commitments in companies that will expand outside of South Africa. By investing in the Fund, IFC will seek opportunities to support this pan-African development by leveraging its knowledge and networks across Africa.

Contacts

For Inquiries About the Project, Contact

Ngalaah Chuphi, Partner
Ethos Private Equity Limited
35 Fricker Road, Ilovo, Johannesburg, 2196
South Africa
Phone: 27-11-328 7433

This Summary of Project Information (SPI) is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC's activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

IFC's Expected Development Contribution

Environmental and Social Issues - Category

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer