A return on a temporary investment and an Ethos Mid-Market Fund I (MMF I) equalisation payment has seen JSE-listed holdings company Ethos Capital’s underlying net asset value (NAV) increase to R10.22 a share as at May 31.
The Ethos MMF I concluded its second close towards the end of May, and is nearing targeted commitments of R2-billion. As a first close investor, Ethos Capital received equalisation proceeds of R78-million, reducing its invested capital from R307-million to R229-million.
As part of the equalisation, it received a return of prime +2% on these proceeds, contributing 3c a share to its NAV. At current commitment levels, Ethos Capital’s participation in Ethos MMF I is 61%, which is expected to reduce to 45% at final close, at which point further equalisation proceeds will be received as well as a prime + 2% return thereon.
Meanwhile, the company reported that the Ethos Mezzanine Fund 3 was making good progress with its fundraising, targeting a first close in the third quarter. Ethos Capital intends to make a commitment of R320-million to this fund.
The Ethos MMF I Investment Committee has also given final approval for two new investments which would result in a total direct and indirect investment by Ethos Capital of R300-million.
These transactions are close to signing.
The Ethos Fund VI Investment Committee has also given approval for a new investment which would result in a total direct and indirect investment by Ethos Capital of R180-million.
In addition, both Ethos MMF I and Ethos Fund VI have a number of other new and follow-on transactions in the pipeline that are in relatively late stages of the acquisition process.