This new fund has boosted Medu Capital's funds under management to R1,5-billion.

Medu Capital was founded in February 2003 with a R250-million private equity fund, Medu Capital Fund I which has successfully been invested in eight companies operating in a variety of industries including healthcare, manufacturing, retail and engineering services.

The two founding executive directors, Nhlanganiso Mkwanazi and Ernest January, said that the same investment strategy of Medu Capital Fund I would be used for Medu Capital Fund II.

"Our two primary investment objectives with Medu Capital Fund II, as with Medu Capital Fund I, are to make medium to long-term equity and equity related investments which will achieve above-average investment returns," said Mkwanazi.

Medu Capital would be looking to invest between R30-million and R170-million a transaction in companies operating in a variety of industries.

"We will be looking to partner established South African companies with strong management teams. Although our focus will be on South Africa, Medu Capital has the ability to invest in companies operating in the rest of Africa. Medu Capital generally acquires a significant minority or majority equity interest in companies and invests alongside the key executives of the business," said Mkwanazi.

Medu Capital Fund II already concluded two transactions. It acquired 25,71% of Elite Truck Hire and 41,3% of Copper Tubing Africa.

"In both investments, Medu Capital Fund II invested in established businesses with impressive track records of profit and cash generation and the management teams are significantly invested alongside Medu Capital Fund II," January commented.