Rohatyn on acquisition: Our combined firms 'will occupy a unique position in our industry'

Africa
Scott graham 5fnmwej4taa unsplash
The Rohatyn Group signed a definitive agreement to acquire African alternative asset management firm, Ethos Private Equity. | Unsplash/Scott Graham

The Rohatyn Group (TRG) signed a definitive agreement to acquire African alternative asset management firm, Ethos Private Equity, according to a press release.

“The philosophical and cultural similarities of TRG and Ethos were apparent from the start,” said Nicolas Rohatyn, The Rohatyn Group’s chief executive officer and founder. “We share a belief that multiple thematic cross currents – such as private credit, renewable energy, digitalization and agriculture, among others – will anchor future investment priorities for investors. Our combined firm, with almost $8 billion in AUM, almost 400 institutional LPs and the ability to offer solutions for de novo investing, as well as ongoing GP consolidations and fund restructurings, will occupy a unique position in our industry.”

The financial terms of the deal, subject to customary conditions including the approval of the South African competition and exchange control authorities, have not yet been disclosed.

The company will combine its expertise with TRG’s knowledge regarding public equities, corporate and sovereign debt, private markets, forestry, agriculture and infrastructure.

“This transaction is a strong vote of confidence in the Ethos team and signals our intention to leverage its platform to drive growth and investment in South Africa and across the continent. In addition, TRG will provide the Ethos business with exposure to a new group of investors and further align our combined efforts with LPs to strengthen the foundations of capital markets on the African continent,” Rohatyn said.

Since its establishment in 1984, Ethos is credited with making more than 150 investments to support South African and sub-Saharan businesses. 

“Africa is a diverse investment destination with significant potential opportunities in private markets, real assets and public markets, for which local expertise and experience are paramount to achieve successful outcomes,” a recent press release said.

“Today’s announcement is the start of an exciting new chapter for Ethos and the culmination of the strategic transformation we started in 2016,” Stuart MacKenzie, Ethos CEO, said.  “Since then, we have successfully diversified our product offering, geographic footprint and sources of capital. This transaction represents a compelling opportunity for us to pursue the next growth phase as the African arm of TRG, one of the largest alternative asset management firms in emerging markets. Our values and cultures are both steeped in a passion for innovation, driving impact, creating value and delivering returns. Together we have an incredible platform for growth, and we are committed to leveraging it for the benefit of all stakeholders.”