The Rohatyn group expands in Africa with the acquisition of Ethos Private Equity
NEW YORK & JOHANNESBURG, November 21, 2022–(BUSINESS WIRE)–The Rohatyn Group (“TRG” or the “Company”), a global asset management firm specializing in emerging markets and real assets investment solutions, has entered into an agreement to acquire Ethos Private Equity (“Ethos”) – a leading alternative asset management company in Africa.
The incorporation of Ethos expands TRG’s capabilities and local presence during a period of financial market volatility, giving investors access to one of the largest and fastest growing regions in the world. Africa is a diverse investment destination with significant potential opportunities in private markets, real assets and public markets, where local expertise and experience are paramount to achieving successful results.
Combining its strengths with Ethos allows TRG to offer a wider range of investment solutions to LPs of both companies. Since 1984, Ethos has made more than 150 investments in favor of South African and sub-Saharan companies. With over 20 years of experience, TRG’s investment teams offer expertise in public equities, corporate and sovereign debt, private markets, forestry, agriculture and infrastructure .
“The philosophical and cultural similarities between TRG and Ethos were evident from the outset,” said Nicolas Rohatyn, CEO and founder of the Rohatyn Group. “We share the belief that multiple thematic cross-currents – such as private credit, renewable energy, digitalization and agriculture, among others – will anchor investors’ future investment priorities. Our combined company, with nearly 8 billion in assets under management, nearly 400 institutional LPs, and the ability to offer solutions for de novo investing, as well as ongoing GP consolidations and fund restructurings, will occupy a unique position in our industry.”
“This transaction is a strong vote of confidence in the Ethos team and signals our intention to leverage its platform to drive growth and investment in South Africa and across the continent. In addition, TRG will provide Ethos’ business with exposure to a new group of investors and further align our combined efforts with LPs to strengthen the foundations of capital markets on the African continent,” Mr. Rohatyn said.
Stuart MacKenzie, CEO of Ethos, added: “Today’s announcement is the start of an exciting new chapter for Ethos and the culmination of the strategic transformation we began in 2016. Since then, we have successfully diversified our product offering, geographic footprint and sources of capital. This transaction represents a compelling opportunity for us to pursue the next phase of growth as the African arm of TRG, one of the largest alternative asset management companies in emerging markets. Our values and cultures are both rooted in a passion for innovation, impact, creating value and generating returns. Together, we have an incredible platform for growth, and we are committed to leveraging it for the benefit of all stakeholders. »
Terms of the transaction were not disclosed. The transaction is subject to customary conditions, including approval by South African competition and foreign exchange authorities.
Lazard Ltd became an advisor to TRG during the transaction process and assisted TRG in its completion.
Founded in 2002, The Rohatyn Group specializes in emerging markets and real assets. The New York-based company currently employs more than 120 professionals based in 16 cities across the United States, Latin America, Europe, the Middle East, India, Southeast Asia and Oceania. It currently has approximately $6 billion in assets under management. For more information, visit www.rohatyngroup.com
About Ethos Private Equity
Established in 1984, Ethos is an investment manager in Africa with private equity and mezzanine strategies. The company has been pursuing a growth vision since 2016 and it is now a diversified, multi-fund platform with a significant presence across the continent. It currently has $1.7 billion in assets under management. For more information, visit www.ethos.co.za
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The Rohatyn Group:
Julia Ambra Verlaine
Marketing & Communications Manager, TRG
Ethos Private Equity:
+27 82 317 4180