South African fund manager, Ninety One, said it has launched a 10-billion-rand fund that will invest in companies struggling from the damage of COVID-19.
Ninety One said the fund was raised in partnership with private equity firm, Ethos Private Equity.
The fund manager said the fund will raise money from institutional investors in two rounds, with the first closing in July, and will comprise a mix of debt and equity, Ninety One said.
It did not specify what type or size of firms it might target, saying many good companies across all sectors would have funding needs that could not be provided by banks or the state.
“The SA Recovery Fund is a market-led, impact initiative to mitigate the negative economic impact of the COVID-19 pandemic, while seeking a commercial return,” Ninety One CEO Hendrik du Toit said in a statement issued to Reuters News.
He added that South Africa faced a “once-in-a-generation” economic challenge. The South African Reserve Bank expects the country’s economy, which tipped into recession in 2019 even before the pandemic hit, to contract by 7% this year, hurting many already struggling businesses and consumers.