Global legal practice Norton Rose Fulbright acted for long-term clients, Barclays Africa Group (BAGL), on the largest private equity fund secondary disposal to date in South Africa.

On 13 December 2013 BAGL, through a wholly owned subsidiary, Absa Trading and Investment Solutions Proprietary Limited, disposed of its entire 73.37% interest in Absa Capital Private Equity Fund I (ACPE Fund I) to a syndicate led by HarbourVest Partners L.P (HarbourVest), comprising funds managed by HarbourVest and Coller Capital Limited.  As of 31 December 2012, the reported carrying value of BAGL’s interest in ACPE Fund I was ZAR2.3 billion.

ACPE Fund I is a fully invested South African private equity fund established in 2008 and focuses on the general industrials sector in sub-Saharan Africa.

As a consequence of the transaction, Absa Capital Private Equity Proprietary Limited, a wholly owned subsidiary of BAGL and investment adviser to ACPE Fund I, was spun off to become a new independent South African private equity fund manager, Rockwood Private Equity.

The Norton Rose Fulbright Johannesburg team was led by investment funds practice head, Lance Roderick, and corporate, M&A and securities director Alastair Dixon.  They were supported by Head of Corporate Kevin Cron and Employment Law directors, Hermann Nieuwoudt and Joe Mothibi.  Regulatory advice was provided by director Bridget King.  Director Marianne Wagener and associate Candice Upfold advised on the competition aspects of the transaction.  Dale Cridlan, director in the Tax Department, assisted with tax advice.  Ian Fox, a partner in the investment funds team in the London office, also advised. 

Lance Roderick, Investment Funds practice head Norton Rose Fulbright South Africa, said:

“This is the largest transaction concluded in South Africa’s secondary market and is an endorsement of the South African and broader African private equity markets by global players, HarbourVest and Coller Capital.”

Contact: Candice Collins, communications manager, Norton Rose Fulbright