Johannesburg-based private equity and infrastructure investment firm RH Managers (RHM) is on a fundraising drive for a R2-billion social impact fund to boost South Africa’s healthcare and energy infrastructure.
Although far more developed than many of its African peers, latest statistics indicate that South Africa will have an infrastructure investment gap of R4.8-trillion by 2030 unless it increases investment in infrastructure to meet the targets set under the National Development Plan, the country’s development blueprint, the firm points out.
RHM says that, through its array of infrastructure funds, it intends to fill the chasm, off the back of increasing quality healthcare, affordable housing and reliable energy demand.
The fund’s mandate is to invest in social infrastructure encompassing healthcare, housing and renewable energy, thereby making them more accessible and affordable to the greater population of South Africa.
RHM, with a pool of investors from both local and international limited partners, is the second largest black private equity firm by assets under management (roughly R5-billion) in South Africa.
The firm plans to have the fund’s first close in December this year and the second close of the fund is earmarked for June 2025.
The launch of Fund 3 follows RHM having previously launched and achieved success in three healthcare funds that raised over R5-billion in debt and equity capital to date.
RHM says it seeks to incorporate sustainable finance and environmental, social and governance considerations in its investment decisions to enable improved outcomes for society and returns for investors.
The RHM team is said to have amassed extensive experience in identifying and structuring acquisition opportunities, in both the green, brown, and later stage investment areas. These investments have involved sourcing investment capital (leverage and equity), construction and commissioning processes.