Ethos

Ethos, an investment manager in Africa, has merged with The Rohatyn Group (TRG), a global asset management firm. Following the acquisition of Ethos by TRG, the companies combined their expertise to unlock growth opportunities across Africa's private markets, real assets, and public markets.

Ethos has helped businesses grow since its founding in 1984 by working with investors and management teams to generate superior returns and a positive impact. The company has transformed into a multi-fund platform with a strong presence in Africa since 2016.

The Rohatyn Group: A diversified asset manager specialising in emerging markets

TRG is a diversified asset management company with a focus on emerging markets, established in 2002 by Nicolas Rohatyn, who had previously built JP Morgan's emerging markets business. The firm now operates in 18 countries worldwide, and its investment teams benefit from a strong business management platform.

TRG promotes a collaborative and respectful culture that encourages active participation and idea-sharing. The firm places significant emphasis on teamwork, which is reinforced through cross-functional meetings and incentive programs.

TRG values transparency and open communication among employees and fosters it through regular team meetings and an accessible partner policy.

TRG's global presence and investment focus

TRG's Public Markets division is primarily located in the firm's headquarters in New York, with additional equity analysts situated in four major world cities. Private equity and credit deal sourcing, due diligence, and portfolio company management are handled by professionals in various global hubs.

TRG's forestry and farmland investment strategies are focused on by experts in cities such as Boston and San Jose. A selection of advisory affiliates of TRG are also located in Mexico City. The company is indirectly owned by its Partners, with two strategic investors based in Asia owning the remainder.

The Ethos approach to driving growth across Africa

They partner with investors and management teams to actively manage portfolio companies and generate superior returns while driving positive impact.

Ethos established the private equity asset class in the region and has since built a renowned platform with a strong track record. In recent years, Ethos has transformed from a monoline private equity fund program to a diversified, multi-fund platform with a significant presence across the continent.

TRG's acquisition of Ethos will help drive further growth across Africa's private markets, real assets, and public markets, leveraging TRG's resources, network, and deep understanding of emerging markets.

EMP3 is a private equity fund that offers mezzanine financing solutions to mid-market companies in East and Southern Africa. It was founded in 2017 and invests in different types of mezzanine financing instruments.

Ethos Mezzanine Partners 3 fund aims to bridge funding gaps for mid-market companies

The main goal of EMP3 is to assist mid-market businesses in acquiring the necessary funds for growth and expansion. Recently, the fund had its first close at $102 million and aims to raise a total capital of $150 million to $200 million.

Current investments in EMP3

The Fund's current investments include:

• Chibuku Products: A Zimbabwean producer of traditional maize-based beer
• Grit: A real estate company operating in the African market
• Turaco: A Kenyan insurance provider

By investing in companies with strong growth potential, EMP3 aims to achieve attractive returns for its investors.

Investment criteria of EMP3

EMP3's investment criteria include:

• Companies with a strong market position
• A proven management team
• A sustainable competitive advantage

The Fund prefers to invest in companies operating in consumer goods, financial services, and telecommunications sectors.

Ethos mezzanine team: Key members and their expertise

The Mezzanine team at Ethos is composed of partners, managing partners, principals, and a CEO. The partners include Bilal Vaiani, who joined Ethos in 2018 and oversees investments in Turaco and Grit; Peter Hayward-Butt, who joined Ethos in 2016 and heads strategic projects; and Richard Onyango, who joined Ethos in 2018 and is responsible for Chibuku Products and Turaco.

The managing partner of the Mezzanine team is Phillip Myburgh, who founded Ethos Mezzanine Partners in 2005 and has over 27 years of experience in mezzanine finance. Stuart Mackenzie, who joined the company in 1998, is the CEO of Ethos.

Bilal Vaiani has experience in facilitating and advising on middle market transactions while working at KPMG in East Africa, the UK, and the Netherlands. He is originally from Kenya.

Peter Hayward-Butt was formerly Co-head of Investment Banking at RMB and has been instrumental in Ethos' growth strategy to become a top Alternative Asset Manager in sub-Saharan Africa.

Richard Onyango has extensive experience in infrastructure development, project finance, and renewable energy. Phillip Myburgh was also head of Credit Portfolio Management in Stanlib's Fixed Interest Division and has overseen credit across ten local currency FI operations in the group.

Stuart Mackenzie has been responsible for originating, overseeing execution, and realizing numerous portfolio companies before assuming the role of CEO.

Ethos' funds and investment strategies in East Africa

• Ethos Fund 6
• Ethos Fund 7
• Ethos Mid-Market Fund 1

The Investment Committees of Ethos Mezzanine Partners 3 and other funds consist of members from Ethos' Exco. The company now operates from its recently established office in Kenya, which offers a continuous flow of potential investment prospects in the wider East African area.