Fact Sheet

Profile

Medu Capital is a professional investment management company with a focus on private equity. Its principal activities include sourcing and evaluation of investment opportunities, execution of investments, active involvement and realisation of investments.

With funds under management of over R1.6 billion, Medu Capital partners with established businesses that require equity risk capital and/or BEE partners.

Funds are sourced locally and internationally from institutions, and the money is invested locally in South Africa and the rest of Africa.

Medu Capital has a proven capability and track record to source and conclude investments, and has established three private equity funds – Medu I, Medu II and Medu III.

Ownership and management

Medu Capital is owned and managed by black South Africans. The executive team consists of Nhlanganiso Mkwanazi, Ernest January, Siyabonga Nhlumayo, Annabelle Satterly, Paul Moeketsi, Godlief Bashele and Paula Mokwena who are responsible for sourcing concluding and managing the investments.

This experienced and motivated executive team has extensive investment and executive management experience – together about 100 years’ experience in auditing, private equity and investment management.

Investment profile

Medu III was formed to make privately negotiated equity and equity related investments.

The investments typically range from R50 million to R200 million, and include companies operating in the basic industries, consumer goods, services, information technology, general industrials, financial services and resources sectors of the economy.

A significant minority or majority equity interests (typically ranging from 15% – 80%) are acquired in a diverse portfolio of companies, with no more than 20% of the aggregate commitments invested in a single portfolio company.

Medu I is fully invested and all of the investments have been realised.

  • VitalAire – pioneered the use of oxygen concentrators in South Africa and is the market leader in the respiratory home care market in the country . This investment was realised in February 2009.
  • Capital Outsourcing Group – a leading reputable temporary employment service provider, based in Durban, that places temporary workers on a weekly basis with customers in diverse industries including FMCG, manufacturing, distribution and oil and gas. This investment was realised in May 2007.
  • Ampaglas Holdings – a leading extruder of rigid plastic sheets, translucent roof sheets and sanitary ware, based in Johannesburg. This investment was realised in March 2010.
  • Zest Electric Motors – the exclusive distributor of WEG electric motors and drives, with a dominant market share in the industrial low voltage electric motor market, based in Johannesburg. This investment was realised in February 2010.
  • Industrial Cable Suppliers – a major supplier of electric copper cable and wire. This investment was realised in February 2010.
  • Pepkor – an investment holding company with retail interests in Africa, Australia and Poland, focusing on the cash retail value market and, through its operating subsidiaries, strongly positioned in various niche markets that satisfy consumers’ basic need for clothing at affordable prices. This investment was realised in July 2011.
  • NCS Resins – Southern Africa’s largest manufacturer of unsaturated polyester resins, gel coats and pigment pastes. This investment was realised in March 2010.
  • Shaw Controls – a leading manufacturer of custom designed low to medium voltage electrical products including Motor Control Centres, Distribution Boards, PLC Panels, Portable Substations. This investment was realised in February 2010.
  • E'nl – a leading specialist electrical, instrumentation and control systems design company. This investment was realised in February 2010.

Medu II had capital commitments of R900 million and is fully invested.

  • Elite Truck Hire – South Africa’s leading truck and forklift hire company, Elite also provides heavy, long distance transport services.
  • CTA - Copper Tubing Africa, a leading manufacturer and supplier of copper tubing and related fittings and accessories for the plumbing market.
  • SARCO – Africa’s only producer of rolls and sleeves for the global steel industry.
  • Medipost & Kawari – Medipost is South Africa’s largest courier pharmacy. Kwari is a pharmaceutical wholesaler which supplies medicines to retail and courier pharmacies. This investment was realised in October 2014
  • Vergenoeg Mining Company – South Africa's largest producer of fluorspar.
  • Erbacon Investment Holdings Limited – Erbacon is a construction company focusing on public sector and mining civil infrastructure and light industrial and commercial building. The investment was realised in October 2013.
  • Industrial Water Cooling – erects and refurbishes cooling towers. This investment was realised in February 2016.
  • Wekaba Engineering – a leading manufacturer of tendon roof support and hydraulic components for the mining, construction and industrial sectors.

Medu III

  • Van Schaik Bookstores – Southern Africa’s leading bookstore chain with stores located in South Africa, Botswana, Namibia and Swaziland.
  • Thoroughtec Simulation – a leading global supplier of high fidelity simulators to the mining, military and construction markets.
  • Elite Truck Hire – South Africa’s leading truck and forklift hire company. Elite also provides heavy, long distance transport services.
  • Universal Paints – manufactures and supplies decorative paint and coatings through dedicated factory outlets.

Medu Holdings strategic investments.

  • KSB Pumps & Valves (Pty) Ltd – a pump and valve manufacturer supplying standard and medium pump technology and hydraulic systems in southern and sub-Saharan Africa; offering a variety of other pumps sourced from fellow subsidiaries throughout the world; and a fast and efficient service for all pump repairs including refurbishment, maintenance and commissioning.
  • Connemara Consulting (Pty) Ltd – a training and human capital development company providing human resource training primarily in the financial, government and information technology sectors.
  • Galison Holdings (Pty) Ltd – Galison is a major manufacturer and supplier of mining equipment including underground and surface rolling stock, transfer chutes, hoppers, scrapers, grizzlies and general steelwork.
  • Kentz – Kentz is a provider of engineering and construction services with a blue-chip client base primarily in the oil & gas, petrochemical and mining and metals sectors.

BEE

Medu Capital embraces the spirit of a scorecard approach to BEE and is well positioned to promote the transformation objectives of the country. With its own strong BEE credentials, one of the primary objectives is to promote the implementation of the scorecard approach in portfolio companies.