Specialised global asset management firm The Rohatyn Group (TRG) on April 3 announced the completion of its acquisition of Ethos Private Equity, an alternative asset management firm in Africa.
Terms of the transaction were not disclosed.
Lazard became an adviser to TRG during the transaction process and assisted TRG in its completion.
Speaking to Engineering News, TRG spokesperson Rohan Dyer outlines that the acquisition is the culmination of the strategic transformation that Ethos started in 2016, evolving from a monoline private equity fund programme to a diversified, multifund platform.
“We’ve just announced completion of the transaction and it is the beginning of an exciting new chapter for Ethos as we become part of TRG. There has been an overwhelmingly positive response from all key stakeholders and we obtained the approval of limited partners and boards across all our funds and advisory contracts,” he enthuses.
Headquartered in New York, TRG is focused on investment solutions in emerging markets and real assets. Ethos, meanwhile, has been pursuing a growth vision since 2016 and it is now a diversified, multifund platform with a considerable presence across Africa.
Dyer explains that TRG previously did not have a presence in Africa and that, following the acquisition, it is now an alternative asset manager with coverage across emerging markets.
“TRG is keen to give investors access to one of the largest and fastest growing regions in the world and it has the scale and expertise to navigate unique challenges and offer innovative investment solutions,” he avers.
Dyer says TRG is cognisant of the fact that Africa is a diverse continent with unique challenges and considerable potential opportunities, for which local expertise and experience are paramount to achieve successful outcomes.
“TRG is an expert in emerging markets and will leverage Ethos’ platform to drive growth and investment in South Africa and across the continent,” he elaborates.
Dyer informs that multiple thematic cross-currents – such as private credit, renewable energy, digitalisation and agriculture – will anchor future investment priorities for investors.
In practical terms, Dyer explains that Ethos has effectively become the African arm of TRG and the firm has acquired an on-the-ground presence in Africa with deep networks, expertise and capabilities.
He adds that TRG has committed to continue to operate Ethos’ current funds and advisory contracts in the same way as before, with no change in personnel or strategy.
“We’ve joined forces to fuel further growth for all our stakeholders.”
Dyer highlights that the former Ethos team is already benefiting from TRG's perspectives, as emerging markets experts, in offering solutions to the challenges and opportunities in Africa.
“This transaction represents a strong vote of confidence in the Ethos team and in South Africa as an important gateway to investment and growth across the continent,” he adds.