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 R1.5 billion, Medu Capital partners 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 two private equity funds– Medu I and Medu II.

Ownership and management

Medu Capital is majority owned and managed by black South Africans. The executive team consists of Nhlanganiso Mkwanazi, Ernest January, Zeyn Angamia, Siyabonga Nhlumayo,  Nangamso Mankai, Annabelle Clark and Paul Moeketsi who are responsible for sourcing and concluding the investments.

This experienced and motivated executive team has extensive investment and executive management experience – together over 53 years experience in auditing, private equity and investment management.

Investment profile

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

The investments typically range from R30 million to R175 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 has fully invested in a number of companies.

  • 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.
  • 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.
  • Enl - a leading specialist electrical, instrumentation and control systems design company. This investment was realised in February 2010.

Medu II had its final closing in May 2008. The fund has capital commitments of R900 million.

  • Elite Truck Hire - South Africa’s leading truck hire company and vehicle contract service provider
  • CTA - Copper Tubing Africa, a leading manufacturer and supplier of copper tubing and related fitting 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. Kawari is a pharmaceutical wholesaler which supplies medicines to retail and courier pharmacies
  • Vergenoeg Mining Company - South Africa's largest producer of fluorspar
  • Erbacon Investment Holdings Limited - Erbacon is an AltX-listed, KZN based, construction company focusing on public sector and mining civil infrastructure; light industrial and commercial building; and small plant hire.

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.