RMI and Black-Owned Investor to Buy 30% of Ethos Private Equity
Ethos Private Equity Ltd. said a group made up of Rand Merchant Investment Holdings Ltd. and Royal Investment Managers is buying as much as 30 percent of the Johannesburg-based buyout firm.
Part of the sale will involve vendor financing to ensure the private-equity company retains and even increases the number of black shareholders, Ethos said in a statement on Tuesday. The capital raised will be used to expand Ethos’ alternative-asset- management business, Ethos said. Peter Mageza will continue as chairman while U.S.-based director Kelly Moylan will step down to take on a role as a senior adviser, Ethos said.
Royal Investment Managers is a black-owned investment holding company that buys equity stakes in either existing or new asset-management firms. It’s backed by Royal Bafokeng Holdings Ltd. and RMI’s investment managers unit. RMI owns shares in some of South Africa’s biggest financial-services companies including FirstRand Ltd. and Discovery Ltd.
The transaction is expected to be completed by the end of this month, according to Ethos. Source: Bloomberg