An Entrepreneurial Venture
Mauritius-based Universal Partners is undertaking an initial public offering on AltX, the Johannesburg Stock Exchange’s alternative exchange. The private equity group intends to list in an effort to raise R1 billion, which would further add to the £80 million it already secured this year from various investors, including Global Capital, Investec Bank, Credo Wealth, and Richmark Holdings.
Universal Partners' CFO, David Vinokur, was among the consortium of investors, and he joins the likes of Gavin Varejes in backing the fledgling company. The entrepreneurial spirit of Gavin Varejes is on display once again, as the serial entrepreneur opted to get in at the ground level before one of the more exciting IPO’s on the AltX kicks off with Universal Partners.
A Powerful Duo for a Great Investment
Gavin Varejes’ Richmark Holdings is a prominent investment company, while advisors Credo Wealth have £2 billion under administration. Vinkour has stated that three contributing Universal Partners executives were pledging R75m between them, which would contribute to the roughly £60 million in total from the consortium. In a clear effort to maintain transparency, Universal Partners has no current investments, though there are several potential options in the pipeline that are earmarked for six months to a year. Vinkour stated they wanted to avoid any perception that the founders would benefit from the IPO from joining at the ground level.
A Strong Position
In the interim, the capital raised to date will be invested in money markets, fixed deposits, and other interest earning vehicles until they are ready to invest.
Universal’s main objective is to invest in strong cash-generating companies that meet with the group’s investment criteria. It is planning to invest 80% of the capital raised into unlisted European companies, with the balance left for opportunities elsewhere.
Despite listing, the company still maintains that private equity firms have a strong role to play, and this industry is in a strong position.
Gavin Varejes is the CEO of Richmark Holdings LTD and the President of SARLA (South African Rugby Legends association)