Private Equity in Southern Africa 2014
 
Conference 
Tuesday 11 February 2014 
Spier, Stellenbosch


Register now to join a host of senior finance and business professionals as we explore the future of private equity in Southern Africa*.


11/02/2014
07:00 - 08:00Registration and refreshments
8:00 - 08:10Welcome:
Leanne Manas, Presenter of Morning Live on SABC2
08:10 - 08:20Opening and Welcome:
Emile du Toit, Chairman, South Africa Venture Capital and Private Equity Association (SAVCA)
08:20 - 09:00Keynote speaker: The World and South Africa beyond 2014: The latest scenarios, flags and probabilities
Clem Sunter, Scenario Planner Extraordinaire and author of  21st Century Megatrends- Perspectives of a Fox
09:00 - 09:45Plenary panel - The fundraising environment for Southern African private equity funds: Shifting trends and winning strategies
  • What is the state of the fundraising environment for funds in the region, and what changes are evident?
  • What are the critical success factors in the fundraising process for Southern African fund managers and what are the major focus areas for investors?
  • How is the composition of investors changing between local and foreign LPs, and commercial versus DFI investors? 
  • What new terms are being included in fund agreements and how do these influence the relationship between the fund manager and investors?
  • How are fund managers adapting their investment strategy to suit the prevailing economic and financial environment, including adjusting the fund allocation between the South Africa and the rest of Africa, the team composition and location of offices?
  • Is there a trend towards thematic specialisation in funds?
Moderator:

John Bellew, Partner, Webber Wentzel 

Panellists:

Idan Segal, Partner and Chief Investment Officer, Convergence Partners
J-P Fourie, Head of Investor Relations, Lereko Metier
Ngalaah Chuphi, Partner, Ethos Private Equity 
Nhlanganiso Mkwanazi, Co-founder and Director, Medu Capital
09:45 - 10:30Fund-manager roundtable: Deal flow dynamics in Southern Africa
  • Deal flow by fund managers in the Southern African market appears to be gaining momentum; is this activity evident across various industry sectors and geographic regions?
  • Competition for deals is heating up; what are your preferred deal-sourcing networks?
  • How have valuations changed in recent years and in what valuation ranges do you see deals being closed? 
  • Has the due diligence process been adapted since the recovery from the financial crisis; has the coverage of due diligence processes expanded?
  • How true is the saying that you have your eye on the eventual exit, right from the moment of the deal making? If so, what factors to you incorporate into the deal structure to optimise the outcome?
  • Are you seeing an emphasis in this market on private equity playing the role of a provider of expansion capital, rather than the model typical in developed markets where leveraged buyouts dominate?
  • Have you seen any development in the secondaries market for private equity assets?
Moderator:

Erika van der Merwe, CEO, South African Venture Capital and Private Equity Association (SAVCA)

Panellists:

Michael Rudnicki, Partner, KPMG Tax and Legal, Head of Financial Services and M&A Tax groups
Andrew Hall, Principal and Executive Director, Trinitas Private Equity 
Darshan Daya, Partner, Capitalworks Investment Partners
Ron den Besten, Managing Director, The Abraaj Group

10:30 - 11.00Break and Book Signing                                                         
11:00 - 11:45Financing forum: On optimising the funding structure of private equity deals
  • What is the appetite for the use of debt capital in private equity transactions and how is this changing? 
  • What has been the impact of recent changes in tax legislation on the use of debt capital in deal funding? 
  • How are management and black economic empowerment stakes in private equity deals being funded? 
  • What alternative funding mechanisms are evolving in the Southern African private equity market? 
  • What is the role of high-yield bonds in private equity transactions in this market? 
  • What is the role of mezzanine in private equity transactions? 
  • What is happening in the mezzanine market? 
  • What is the degree of competition and the level of deal flow in this sector? 
Moderator:

Simon Denny, Director, Deutsche Bank

Panellists:

Stuart Harrison, Head of Acquisition and Leveraged Finance, Nedbank Capital 
Brian Marshall, Co-Head, Debt Products, Investment Banking, Standard Bank 
Warren van der Merwe, Chief Financial Officer, Vantage Capital 
Michael Fischer, Director, DEG Regional Office Southern Africa



11:45 - 12:15Excellence in Exits: Lessons for the next generation

Facilitator and interviewer:

Adam Green, Senior Reporter, This is Africa, a Financial Times service

11:45 - 11:55Presentation: Findings from a survey into the latest trends in private equity exits in Southern Africa

Graham Stokoe, Associate Director, Transaction Advisory Services, EY


11:55 - 12:00Video: Interviews with industry stalwarts and current deal-makers on their exits experiences.
12:00 - 12:15Interview: A secondary sale in South Africa

Panellists: 

Andrew Dewar, CEO, Rockwood Private Equity
Axel Hansing, Senior Partner, Coller Capital
12:15 - 13.30Lunch
13:30 - 14:15The Great After-Lunch Debate: Finding the winning niche strategy for the next decade

Facilitator:

Leanne Manas, Presenter of Morning Live on SABC2

Participants provide a six-minute pitch to sell the industry or investment style in which they specialise.

Clean Energy: 
Christopher Clarke, Director and Principal, Inspired Evolution

Infrastructure: 
Andrew Johnstone, Managing Director, African Infrastructure Investment Managers

Finding Opportunities in the Hidden Middle Class: 
Soula Proxenos, Managing Partner,  International Housing Solutions

Agriculture: 
Stuart Bradley, Senior Partner, Phatisa 

Forestry: 
Kevin Tidwell, Principal, GEF Advisors

Venture Capital: 
Keet van Zyl, Co-Founder and Partner, Knife Capital

Three-Dimensional Capital:
Navaid Burney, Managing Director, One Thousand & One Voices

14:15 - 15.00CEO Roundtable: Active Value Management to boost performance:
A presentation of findings on the impact of private equity in Southern Africa, followed by a panel discussion with CEOs of private equity portfolio companies on their own experiences with value addition through private equity backers.
Moderator:

Peter Baird, Head, Standard Chartered Private Equity

Panellist:

Clive Smith, CEO, Tsebo Outsourcing Group
Eddie Keizan, Non-Executive Chairman, Tiger Wheel & Tyre 
Ndumiso Davidson, COO, South Point
15:00 - 15:30Networking break                      
15:30 - 16:25LP Session: What are investors' views on private equity?
15:30 - 15:40Presentation: Research findings, on investors’ views on private equity in Southern Africa

Rory Ord, Head, RisCura Fundamentals

15:30 - 16:25Round table: How institutional investors are accessing private equity in Southern Africa
  • The latest LP Survey from EMPEA emphasises the importance that LPs place on African private equity; where does Southern Africa feature in this ranking? Why?
  • What are your top criteria for selecting a manager – and how have these changed in the past few years? Why?
  • What are your targeted returns in the Southern African market and what underpins this expectation
  • What are your views on the relatively low exposure by South African pension funds to private equity?
  • What are three most important risks you look for in a due diligence? 
  • What are the three most important terms in a contract that could become points of negotiation?
  • How is the Southern African private equity market likely to evolve over the next decade? 
Moderator:

Robert van Zwieten, President & Chief Executive Officer, Emerging Markets Private Equity Association (EMPEA) 

Panellists:

Sbu Luthuli, CEO and Principal Officer, Eskom Pension and Provident Fund
Thiru Pather, Associate Principal, Public Investment Corporation 
Matthew Hunt, Director, Ke Nako 
Tapan Meshram, Vice President, Gulf Investment Corporation

16:25 - 16:45Closing speaker: Lessons for private equity from winemaking
Michael Jordaan, Entrepreneur and former CEO of First National Bank
16:45 - 17:00Summation and Close
17:00 - 18:00Cocktail reception