Private equity investor focused on emerging markets and real assets, The Rohatyn Group (TRG), which previously took over Citigroup’s private equity investment franchise more than a decade ago, has installed in Africa with a definitive agreement to acquire Ethos Private Equity.
The development comes just over a week after Ethos, a South African private equity firm, said its medium-sized team had split to form Infinite Partners.
TRG said combining its strengths with Ethos positions it to provide a wider range of investment opportunities for limited partners of both companies. He did not disclose the terms of the transaction.
Since 1984, Ethos has made more than 150 investments in favor of South African and sub-Saharan companies. With over 20 years of experience, TRG invests in public equities, corporate and sovereign debt, private markets, forestry, agriculture and infrastructure.
The transaction is subject to customary conditions, including approval by South African competition and foreign exchange authorities.
Nicolas Rohatyn, Founder and CEO of TRG, said: “We share the belief that multiple thematic cross-currents – such as private credit, renewable energy, digitalization and agriculture, among others – will anchor the future priorities of investor investment. Our combined company, with nearly $8 billion in assets under management, nearly 400 institutional LPs and the ability to offer de novo investment solutions, as well as ongoing GP consolidations and fund restructurings, will occupy a unique position in our sector.
The New York-based company employs more than 120 professionals in 16 cities in the United States, Latin America, Europe, the Middle East, India, Southeast Asia and Oceania. It currently has approximately $6 billion in assets under management.
Stuart MacKenzie, CEO of Ethos, said the company has diversified its product offering, geographic footprint and sources of capital since 2016 to provide alternative asset management companies in emerging markets.
Established in 1984, Ethos is an investment manager in Africa with private equity and mezzanine strategies. The firm says it has been pursuing a growth vision since 2016 and is now a diversified, multi-fund platform with a significant presence across the continent. It currently has $1.7 billion in assets under management.
Lazard advised TRG during the transaction process and assisted TRG in its completion.