E Squared makes first private equity bet, backing Old Mutual's Fund VI
What's the deal? E Squared Investments has committed capital to Old Mutual Private Equity's (OMPEDealroom has a profile for this one. Try Dealroom →) Fund VI, marking the South African impact investor's first private equity fund investment. OMPE, part of Old Mutual Alternative InvestmentsDealroom has a profile for this one. Try Dealroom →, invests in South African businesses across sectors including manufacturing, education, healthcare, financial services, tourism and consumer.
What's the endgame? The move fits E Squared's Fund of Funds strategy, which backs fund managers, entrepreneurs and businesses aiming for commercial returns alongside measurable social outcomes. The firm wants a diversified portfolio spanning the private market spectrum while supporting inclusive growth in South Africa and across the continent.
Why this fund? OMPE targets high-quality businesses with strong management, growth tailwinds and high cash generation, and has more than two decades of investing experience. Fund VI has already backed Much AsphaltDealroom has a profile for this one. Try Dealroom →, a bitumen supplier, and Honoris United UniversitiesDealroom has a profile for this one. Try Dealroom →, a pan-African higher education platform.
For E Squared, the commitment plays a specific role in its investment structure. "This commitment marks E Squared's first private equity fund investment, anchoring the later end of our risk curve and generating distributions that can be recycled into earlier-stage, catalytic investments central to our mandate," said Pyi Maung, chief investment officer at E Squared.
The context: The deal extends E Squared's shift from balance-sheet investor to institutional capital provider. In 2023 it launched a R300 million seed fund-of-funds with the SA SME FundDealroom has a profile for this one. Try Dealroom →, DSIDealroom has a profile for this one. Try Dealroom → and TIA to back more than 50 tech startups, and it has anchored institutional rounds elsewhere.
Both sides framed the tie-up around shared priorities. "There is strong alignment between our organisations in how we approach long-term investing, partnership and impact," said Jacci Myburgh, co-head of OMPE, adding that the firm continues to see opportunities in businesses positioned to grow and create employment.
The signal: Against constrained South African growth capital and rising interest in impact-linked private equity, E Squared's entry into buyout-stage funds rounds out its strategy — using later-stage returns to recycle into the earlier, catalytic bets at the core of its mandate.
Read more: Business Explainer
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