27four Investment Managers
16th October 2019
27four Black Business Growth Fund in partnership with the Jobs Fund
Through our partnership with the Jobs Fund, we are catalysing job creation, transformation and economic growth through Black Business Growth Funding.
The Jobs Fund co-finances projects by public, private and non-governmental organisations that will significantly contribute to job creation. This involves the use of public money to catalyse innovation and investment on behalf of a range of economic stakeholders in activities that contribute directly to enhanced employment creation in South Africa.
The Accelerated Black Business Growth Funding project is a partnership between 27four Investment Managers and the Jobs Fund, which sees the Jobs Fund contribute R200 million to the 27four Black Business Growth Fund (the “Fund”). 27four has in-turn committed to raising R1 billion in matched funding.
The Fund’s mandate is to create jobs through providing funding to emerging black private equity fund managers focussed on investing in mid-sized, privately-owned companies for growth and job creation.
Our fund managers will back companies that are already sustainable, but that require strategic support and capital to grow further.
We expect to create 3500 unskilled, semi-skilled and skilled jobs over the Fund’s life across various industries including healthcare, technology, education, consumer, industrials and manufacturing sectors.
The project is also expected to accelerate transformation of the private equity sector and wider economy and develop sustainable black private equity managers and mid-market businesses.
We expect the project to achieve the following:
- Support the transformation of the financial services sector and the development of 5-7 black private equity managers
- Support investment into +/-50 mid-sized companies across multiple sectors
- Create over 3,500 jobs in these companies
- Drive transformation in these companies
- Provide positive socio-economic outcomes, such as improved access to services
As Michael Jordan, “the greatest basketball player of all time”, has been quoted as saying: “Talent wins games, but teamwork and intelligence win championships”.
The same is true when it comes to bringing together various stakeholders with different motivations that ultimately will result in the expected outcomes for each one longer term. In the case of pension funds it is ensuring their members retire well, in a society where everyone enjoys a good later life. For government it’s investing in the real economy to create positive long term outcomes for our people ensuring it creates a more equal society for its people. Individually, this can be achieved but not without its challenges, but together, the impact can be that much more positive for all.
How can I invest into the Black Business Growth Fund?
The Fund is accepting investments from institutional investors such as pension funds, insurance companies and banks, as well as high net worth individuals. There is a minimum investment of R20m.
How do I get the Black Business Growth Fund to allocate capital to my Black Private Equity Fund?
27four as manager of the Fund is considering Black Private Equity Funds for inclusion in the portfolio. These funds must meet the definition of Black Private Equity Funds per the Financial Sector B-BBEE code, and must also be appropriately licenced by the FSCA and be prepared to comply with the Conditions for Investment in Private Equity supplementary documents to Regulation 28 of the Pension Funds Act. If your fund meets these criteria then you are welcome to contact us through email@example.com for next steps.
How do I get funding for my business?
The initiative does not support businesses directly. 27four as manager of the Fund appoints underlying private equity fund managers to make the investments into portfolio companies. If your business has turnover between R100m to R1 billion and is looking for capital to drive growth that is likely to result in job creation then you are welcome to contact us through firstname.lastname@example.org for next steps.
27four BBGF II hits second close at R710m
27four Black Business Growth Fund II (27four BBGF II), a blended finance partnership between the South African Government through the Jobs Fund, and South African institutional investors, has announced a second close with total capital of R710m.