The Lereko Metier Capital Growth Fund (LMCGF) in which Lereko holds 51% shares and 49% is held by Metier, was established to capitalise on the extensive experience and credentials of its principals to exploit and develop investment opportunities in South Africa. The Fund has six principals, three of whom are from Lereko (Valli Moosa, Popo Molefe and Lulu Gwagwa).
LMCGF is a pioneer in the field of private equity funding bringing together the investment franchises of Lereko and Metier. The Fund closed to investors at the end of 2007 with R3.5 billion of capital including debt facilities and co-investing commitments. It exceeded targets for mobilising South African capital for private equity. This proved that its model was credible and had the backing of the industry’s leading investment names.
The Fund is substantially invested across eight portfolio companies and has the capacity for follow-on investments. The portfolio profile is characterised by creative, differentiated and uncontested transactions where the Fund partnered entrepreneurs with a passion for growth.
The goal is to generate market-leading returns, not only in financial terms, but also through active and socially responsible investing. By bringing more than finance to investments, LMCGF is a preferred partner for investors and entrepreneurs alike.
A brief summary of the LMCGF investments is provided below.
Astrapak, established in 1996 and listed on the Johannesburg Stock Exchange, is a consolidation of plastic packaging companies headquartered in Denver, Johannesburg. It operates nationally through Rigids and Flexibles divisions, and employs over 4 400 people in its operations which report annual revenues of around R2.6bn, making it the largest player in the South African plastic packaging market.
Elementum, established in 2007 and headquartered in Sandton Johannesburg, is a LMCGF sponsored platform built up of businesses in the design, manufacture and distribution of electronic security, detection, automation and access control applications. LMCGF capitalised and resourced Elementum to create a platform of security products for the local and emerging market.
Vox, headquartered in Waverley, Johannesburg, is an independent telecommunications operator providing voice, data, converged and managed communication services. Vox provides cost-effective, innovative telecommunication solutions to consumer and business customers through offices nationally in South Africa and Namibia.
York Timbers, established in 1916, headquartered in Sabie, Mpumalanga, and listed on the Johannesburg Stock Exchange, is the largest privately owned integrated forest products business in South Africa. York supplies the building, construction and industrial markets with lumber and plywood products. It has 62 000 planted hectares of Forest Stewardship Council (FSC) certified plantation forests of which circa 57 000 hectares are pine and circa 5 000 hectares are eucalyptus.
Professional Learning Group PLG is a holding company established by LMCGF and including co-investment from Ke Nako Capital and the Dutch development agency FMO, as part of an education sector build-up investment. The Education Platform intends to target strategic bolt on acquisitions in the private tertiary distance education space. The platform has made one investment to date, being the Institute of Marketing Management (IMM) Group. IMM employs more than 75 staff and provides industry endorsed education and training products.
Professional Learning Group has made two investments to date in its strategy to create a high quality, reputable, private tertiary education group of scale with operations covering South Africa and Sub-saharan Africa, Being the IMM Group of companies (IMM Operations) and Oxford College of Marketing (Oxford College). IMM Operations employs approximately 80 staff and provides industry endorsed higher education and training products. Oxford College employs 18 staff and is a provider and tutor of tertiary higher education courses in marketing, supply chain and sales.
