Ethos Private Equity is mulling a GP-led process on its 2011-vintage fund, the second sizeable Africa-focused deal to emerge this year.
The Johannesburg-headquartered private equity firm is considering giving limited partners in its $800-million Ethos Private Equity Fund VI the opportunity to sell their stakes to a secondaries buyer, according to three sources familiar with the deal.
The buyers would also make a stapled primary commitment to Ethos’s flagship fund in market, one of the sources said.
Credit Suisse‘s private fund group is advising on the process, Secondaries Investor understands. It is not clear what stage the process is at.
“Ethos does not comment on speculative information regarding our funds, portfolio investments or strategy,” said a spokeswoman. “Rather, we communicate with key stakeholders as and when prudent, timely and respecting the confidentialities of our legal agreements.”
Ethos launched Private Equity Fund VII last year seeking 8 billion rand ($538 million; €476 million) and has raised 2 billion rand so far, according to PEI data.
Fund VI has at least eight remaining assets including South African media group Primedia and logistics company RTT, according to Ethos’s website. At the end of May the firm exited its position in telecom towers operator Eaton Towers, one of the strongest-performing assets in Fund VI, according to a source familiar with the portfolio.
In mid-May Secondaries Investor reported that the Carlyle Group was exploring a tender offer on its 2013-vintage, $698 million Sub-Saharan Africa Fund. The buyer would also make a commitment to a follow-up fund, which is set to launch this year.
According to research by Greenhill, secondaries stakes from funds outside North America, Europe and Asia accounted for five percent of the $74 billion in deal volume last year.
Credit Suisse declined to comment.
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