Mid-market fund spins out of Ethos to create Infinite Partners
· Infinite Partners will continue with a mid-market focus, and has ambitions to expand its offering
· Proven team with an extensive track record of private equity investing
· Founding investment team is 100% black, with 75% women majority
10 November 2022 - Johannesburg - PRESS RELEASE
The Executives of Ethos’ Mid Market Fund and Ethos Private Equity have announced that the mid-market team is spinning out, to form a new independent private equity fund manager – Infinite Partners.
Infinite Partners will continue to manage Ethos Mid Market Fund I, which raised R2.5bn in capital commitments in 2018. Ethos will continue to support the Fund’s governance, and the team is committed to optimising outcomes for all stakeholders.
Infinite Partners will commence independent operations and capital raising to focus on a wider spectrum of investment strategies. Whilst Infinite Partners is a new entity, it comes with significant track record and heritage – cementing its place in the regional private equity market. The founding Partners – comprising Edward Pitsi (CEO), Titi Sekhukhune (Partner), and Tabane Matheolane (Partner) have:
Worked together for over ten years, sharing a cohesive culture and investment approach.
Successfully led or jointly led 10 portfolio company investments, plus played meaningful roles on four exits, across other funds. Investments have been across sectors, investment maturity and type.
Promoted Naomi Nethengwe to Principal, she has been an integral member of the team over the last four years and is part of the founding team of Infinite Partners. Additional appointments are anticipated in the near to medium term.
100% Black representation, with 75% of the investment team being women, reinforcing the firm’s regional relevance and global differentiation.
75% ownership of Infinite Partners, reaffirming its ability to confer Black-ownership credentials on 100% of the equity it invests in portfolio companies.
Anchored in South Africa, Infinite Partners sees considerable opportunity to invest multi-strategy funds to span the African continent and beyond.
Edward Pitsi, Infinite Partner’s CEO, said of the spin out rationale:
“The team and I shared an ambition to be more independent and pursue diverse investment strategies, including long dated capital. This desire is reflected in our name – Infinite Partners.
Beyond our commitment to existing portfolio investments, we are well poised to commence the process of speaking with investors to realise a number of new fund mandates which will incorporate long-dated capital, traditional, and specialist funds.”
Founding partner, Titi Sekhunkhune, added:
“We remain committed to serving the investors who backed us in Ethos Mid Market Fund I. To this end, we will continue partnering with the management teams of the Fund I portfolio companies to achieve our shared ambitions, for the ultimate benefit of all stakeholders. We are also excited about the prospect of building an innovative business and making a valuable contribution to the alternative asset management industry in South Africa and beyond.”
Stuart MacKenzie, Ethos CEO, concluded:
This initiative is a continuation of Ethos’ long history of supporting black-owned managers. We remain committed to growing the local private equity industry and we will continue to invest in South Africa through multiple, complimentary strategies. At the same time, Ethos is a multi-fund platform with a significant presence across Africa and it will continue to pursue growth and diversification opportunities for its product offering and geographic footprint.”
Ethos will own 25% of Infinite Partners and have board representation.