Moravia Capital aims to provide its clients with sound knowledge of specifics of different target fund raising markets and supports the establishment of long-term relationships between General Partners and Limited Partners.
 
Dr. Anna Mokgokong, an acclaimed South African business woman and entrepreneur has joined the Advisory board of Moravia Capital. She is the founding member and group executive chairperson of Community Investment Holding (CIH), a multi-billion Rand investment holding company. She sits on boards of numerous listed and unlisted companies, locally and internationally. She serves as the senior director for five Johannesburg Stock Exchange-listed companies; in this capacity, she is the chairperson of Rebosis Property Fund Limited, Jasco Electronics Holdings Limited and Afrocentric Investment Corporation. She holds numerous state institution and women leadership positions in South Africa, including Chairperson, Small Enterprise Development Agency; Panel member, State Information and Technology Agency; President, South African Women Entrepreneurs Network; etc. Dr. Mokgokong was inducted into the leading Women Entrepreneurs of the World, an independent, international network of the world’s powerful and successful female entrepreneurs in 1998. In addition, she is also the recipient of the prestigious SA Businesswoman of the Year Award 1999. Dr. Mokgokong will add her investment expertise and her profound knowledge of the South African market and support Moravia Capital in building up their local presence in Africa.
 
The Helen Harder foundation was created to support, inspire and financially assist woman that are diagnosed with breast cancer under the age of 40. The founder is Alwyn Bradenhorst. He created the foundation in 2013 in memory of his loving wife Helen Harder. In December 2012 at the age of 32, she lost her battle to breast cancer. Alwyn and Helen originally met in 1998. They remained in contact as friends but in 2010 there friendship turned into a relationship and shortly after a marriage. In 2011, Helen discovered a lump on breast which was later diagnosed as stage 3 breast cancer. After seeking a second opinion, she discovered she had stage 4 breast cancer. Helen was surprised because there was no history of breast cancer in her family. During her chemo therapy, radiation and brain surgery she remained positive hoping she could beat cancer. She created a blog as a journal to document her journey to educate and inspire woman from all over the world. She participated in events that raise awareness to help fight this disease. Alwyn has carried on Helens fight through the Helen Harder Foundation. He has also created a website: www.helenharderfoundation.com The website discusses a wide range of topics to provide woman with the insight and knowledge which is mainly influenced by Helens Journey described through her blogs Moravia Capital would also like to raise awareness in breast cancer.
 
Mr. Victor Matfield, a famous South African rugby union player and successful entrepreneur, has joined the Advisory Board of Moravia Capital. He has played for and captained the Springbok rugby team as well as the Blue Bulls in the Currie Cup and the Bulls franchise in Super Rugby. He is generally considered one of the best locks in the world. Mr. Matfield will add his investment expertise and his profound knowledge of the South African financial market and support Moravia Capital in building up their local presence in Africa.
 
Moravia Capital Africa has entered into a joint venture with WAD Holdings Proprietary Limited. Our partner, WAD Holdings was established in 2003 and is a leading independent venture capital conglomerate operating in South Africa and Ireland. The company is active in various industries including healthcare, insurance, TMT, mining, financial services and venture capital funding. It is Moravia Capital Africa’s objective to build an investment bank for the African market. Small and medium sized enterprises are striving to become global players but in many cases face obstacles of not having access, necessary networks or the budget to enter very attractive emerging markets, which evidently have an appetite for new products. Moravia Capital Africa and its experienced local management as part of its investment banking services is offering guidance, personalised service and tailored solutions to its clients to expand into South Africa and the African continent. The company is ready to form long-term partnerships and jointly build a successful local business. In closing, Moravia Capital Africa facilitates an introduction to a suitable local corporation and supports the entire partnering process.
 
High inflation as well as rising interest rates may have led to a pessimistic view of Indian markets especially for the domestic investors. But it has not dampened the mood for foreign investors. Particularly for the foreign companies who have poured funds into India for acquiring Indian companies. As per the advisory firm, Grant Thornton, foreign companies and private equity funds have invested nearly US$ 22.7 bn in India. The number of inbound M&A (mergers and acquisitions) deals has jumped up to 125 from the 2010 levels of 82. A major reason for this increased inflow was the global crisis. The crisis that has gripped the developed world made fast growing economies like India more attractive.
 
Vietnam was as hot a topic as Indonesia is right now before the 2008 financial crisis, but it seems to have lost its lustre. Why?
Problems in Vietnam… where do we start? Depreciating currency (the only Asian country to face this problem in 2010), raging inflation (23 percent in August 2011), commercial lending rates reaching as high as 27 percent, stock market declines (-3 percent in 2010 when almost all Asian markets were up and -21 percent in 2011), financial problems at a major SOE, trade deficit, plunging property prices and, most recently, risks in the banking sector.

Back before the financial crisis, many private equity investors were busy chasing Vietnam as the next China, believing that investing in emerging opportunities is the best way to get outsized returns. The investment story included fast growing economy, SOE privatisation, low cost of manufacturing, business friendly government… all the elements that make it a viable “second China story”.

Investors were rushing headlong into Vietnam even knowing that the private equity environment was weak (accounting, legal infrastructure and ability to exit via the capital markets being highly episodic) and the privatisation exercises did not always benefit the end financial investors. What most missed is the fact that it was not a couple of years behind China but rather more than 10 years, and they basically went in too early. In short, the opportunity was clear but the high risk required to generate the attractive potential returns was significantly under-estimated and the margin of safety in valuation was not available.

 
What about Indonesia? Many firms are now fundraising for the country with sights set on the consumer and resources sectors. Do you think there are enough opportunities?

I have my concerns for many of the same reasons that I had already mentioned for Vietnam. I believe that many of the themes are a rehash of what we said before the Asian financial crisis. Many of these opportunities – particularly the resources – are cyclical, and it does not look like we are at the early part of the cycle. So it’s not clear that we have the necessary margin of safety today. On the consumer side, I believe what is being missed is the fact that much of the population is actually very low income. I am also concerned by the entrenched positions of conglomerates in that country and their participation in the PE market.

I do agree that it is possible that we are at the cusp of a major game changing event that will drive significant growth in the PE opportunity set, and if one has that view then one should definitely invest. However, that is not clear for us at this time and in that scenario, we are clearly concerned about the significant amount of money being raised currently.

We are generally nervous when managers can raise more than three times the size of their previous funds and are still over-subscribed especially in relatively small PE markets of Southeast Asia. In these places, if you get the timing wrong, like in Vietnam, things can get very bad when the cycle goes against you, and we have better alternatives as to where we put our money. So, understand the attraction, but we will be very careful.
 
Buyout, exits soar in robust Australian market

Private equity figures in Australia are hitting new highs as more investors look to Asia Pacific for opportunities. With buyouts up 542 percent since the heart of the crisis, exit figures are higher than ever, according to research from Dealogic.

Defying trends in the Western world, Australia’s private equity market is radiating health as buyout levels in 2011 reached their highest since 2006, according to figures from data provider Dealogic.

Figures show that so far in 2011, $6.6 billion worth of private equity buyouts have been done in Australia. This shows a 542 percent increase from the $1 billion worth of buyouts carried out in the whole of 2009 and marks a significant recovery from the crisis.

Exit figures show even more impressive results, with $9.4 billion worth of private equity exits realised so far in 2011 – the highest value ever recorded in the country. This brings the value of total private equity activity to date in 2011 to $14.5 billion – an 85 percent increase on the whole of last year.

Tom Story, co-head of private equity at law firm Allens Arthur Robinson said in an interview with Reuters, "The threat of European default and recession has pushed many global sponsors to turn to Asia where the role of Australia is crucial."

With Asian economies booming and attracting more interest from private equity firms, Australia has an opportunity to continue growing and attract even more foreign interest on the back of the growth from countries like China and India.

Leon Saunders Calvert, global head of deals & private equity at Thomson Reuters commented on the situation:  "As a market which shares as much in common with Western Europe and the US as with Asia, Australia has been well positioned for private equity activity growth. It has a relatively developed private equity industry but, crucially, is positioned to take advantage of Asian sentiment and confidence and is able to better avoid the pervasive market uncertainty and pessimism in the West.”

“With financing available, dry powder to spend and buyer and seller expectations aligning around cheap opportunities, 2011 has proven to be a bumper year. However, deal activity is confidence driven and the ability to continue to escape the repercussions of the eurozone crisis in 2012 will be the defining factor in whether this positive trend can continue."

The stellar results from the region also reflect the success of private equity over public markets. Last week PE Asia reported that Australian private equity had outperformed the country’s stock index and other key asset benchmarks over a number of different time periods, according to figures from the Australian Private Equity & Venture Capital Association (AVCAL).

AVCAL together with Cambridge Associates developed the CA Australia Index to measure the performance of Australian private equity and venture capital. For the quarter ended in June, the CA Australia Index had annualised returns of 8.59 percent, 2.42 percent, 4.23 percent and 7.81 percent over one, three, five and 10 years respectively, AVCAL said in a statement.

Maximised returns and heightened levels of activity seem to have sparked the fundraising market in Australia as well. The AVCAL 2011 yearbook showed that year-on-year, fundraising increased 72 percent for the year ending 30 June, after registering a decline for three consecutive years.
 
to top
 
IMPRINT