Hlayisani Capital marks first close of maiden SME fund

 Hlayisani Capital marks first close of maiden SME fund

Hlayisani Capital has hit the first close of its Hlayisani Growth Fund to invest in high-growth businesses, with the backing of Standard Bank and prominent South African family offices.

The alternative investment firm marked the first close of the HGF at ZAR350 million ($60 million).

The development was first reported by Venture Burn.

The fund aims to bridge the funding gap faced by South African companies that need money between early-stage venture capital and traditional private equity.

The investment house has already been managing Endeavor’s Harvest Fund. It was brought under the umbrella of HGF. It has backed seven businesses—Snapplify, Gometro, Wyzetalk, LEAP, Opennetworks, Sudonum and Ikeja.

Launched in 1997, Endeavor was established to stimulate global entrepreneurial activity in emerging markets. In 2012 it introduced Endeavor Catalyst, a rules-based co-investment fund that provides equity capital at the venture and growth stages.

Endeavor South Africa opened its offices in 2004. To date, it has backed nearly 100 entrepreneurs in multiple industries across fintech, healthcare, technology, FMCG, agriculture, education and enterprise software and services.

The HGF is the first fund offered by Hlayisani Capital, started by Reuel Khoza and Michael Jordaan.

Khoza is a former chairman of Nedbank Group Ltd, Eskom Holdings and GlaxoSmithKline South Africa. He also served as director of the JSE Ltd, IBM South Africa, Liberty Life Group, Standard Bank Group, Nampak Ltd and Old Mutual plc.

Jordaan is a wine farmer and former CEO of First National Bank, one of SA’s largest banks with a customer base of nearly 9 million. Since leaving banking he has made nearly 30 venture capital and private equity investments across various sectors through Montegray Capital and Angelhub Ventures.

Vivek Sinha

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