Key Takeaways
- • Capitalworks has launched Capitalworks Private Equity Fund IV (CWPE IV), a South Africa-focused generalist private equity fund targeting total commitments of $350 million.
- • The International Finance Corporation (IFC) has committed up to $80 million, comprising a $40 million fund investment and a $40 million co-investment envelope.
- • Standard Bank is a notable new investor alongside IFC, with the fund's first close drawing banks, pension funds, family offices, fund of funds and development finance institutions.
- • CWPE IV will pursue established mid-market companies with strong growth prospects in FMCG, industrial services, logistics, retail, hospitality and tourism.
Summary
Capitalworks has announced the launch of Capitalworks Private Equity Fund IV (CWPE IV), a South African-focused generalist private equity vehicle targeting total commitments of $350 million. The fund continues the strategy of its predecessor funds, which centers on investing in established mid-market companies with strong growth prospects, defensible market positions and the potential to scale.
Target sectors include fast-moving consumer goods, industrial services, logistics, retail, hospitality and tourism. The first close has secured support from a group of local and international institutional investors, including banks, pension funds, family offices, fund of funds and development finance institutions.
Two notable new investors are Standard Bank and the International Finance Corporation (IFC). IFC has committed up to $80 million, split between a $40 million investment in CWPE IV and a $40 million co-investment envelope. Farid Fezoua, IFC's director of equity, funds, and venture capital, said the investment "underscores our commitment to expanding opportunity through private sector growth in South Africa."
Chad Smart, co-founder of Capitalworks, said South Africa has a well-established private equity market, but the mid-market remains relatively underserved. He said the firm continues to see compelling opportunities to partner with high-quality businesses and support ambitious management teams, and described the first close as reflecting "strong confidence in our platform, our disciplined investment approach and the long-term opportunity in South Africa's private sector."
Target sectors include fast-moving consumer goods, industrial services, logistics, retail, hospitality and tourism. The first close has secured support from a group of local and international institutional investors, including banks, pension funds, family offices, fund of funds and development finance institutions.
Two notable new investors are Standard Bank and the International Finance Corporation (IFC). IFC has committed up to $80 million, split between a $40 million investment in CWPE IV and a $40 million co-investment envelope. Farid Fezoua, IFC's director of equity, funds, and venture capital, said the investment "underscores our commitment to expanding opportunity through private sector growth in South Africa."
Chad Smart, co-founder of Capitalworks, said South Africa has a well-established private equity market, but the mid-market remains relatively underserved. He said the firm continues to see compelling opportunities to partner with high-quality businesses and support ambitious management teams, and described the first close as reflecting "strong confidence in our platform, our disciplined investment approach and the long-term opportunity in South Africa's private sector."
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