Email this article	Comment on this Article	Print this article

Private equity industry plays vital role in in the development of a country’s economy

The South African Venture Capital Association (SAVCA) says Mutle Mogase has replaced Malcolm Segal as its new non-executive chairman.

Mogase is the executive chairman of Vantage Capital, an independent, majority black-owned and managed private equity and mezzanine fund business.

Mogase replaced Segal as non-executive chairman with effect from 1 October 2006. Segal has been executive chairman of SAVCA since 2002. He will continue to serve on the SAVCA committee.

“Malcolm has played a critical role in the development of SAVCA and it is a great honour to be elected by my colleagues to continue to build on the foundations he has laid,” says Mogase.

SAVCA is an industry association representing over 60 companies in the venture capital and private equity industry in South Africa.

The industry has more than R44 billion in assets under management, while membership encompasses approximately 400 professionals. (R27 billion of this R44 billion is managed by fund mangers that are either black owned, controlled or influenced, and in 2005 SAVCA members invested R3,3 billion in businesses that were either black owned, controlled or influenced).

SAVCA was formed in 1998 and its mission is to play a meaningful role in the Venture Capital and Private Equity industry by:

• Promoting the interests of the industry
• Lobbying on behalf of the industry
• Disseminating information
• Arranging training for the staff of its members
• Researching the industry in SA

Mogase has been involved in the private equity business since 1998, when he, in association with Colin Rezek, started Vantage Capital.

To date, Vantage Capital has invested about R500 million in 12 investments. It also recently launched Vantage Risk Capital, the first South African black controlled, fully independent mezzanine fund.

Mogase says as chairman of SAVCA he would like to foster a greater degree of co-operation and dialogue between the private equity industry and institutional investors and asset managers.

“The industry needs to get closer to investors and other stakeholders in an organized and structured way.”

Mogase also says more needs to be done in communicating to government the role the private equity industry plays in the development of a country’s economy.

“We should stress the importance to government of the private equity industry and address areas which are hampering its development, like the tax treatment of private equity businesses.”

Mogase was a member of the core group that negotiated the Financial Services Charter. He also served on the Financial Markets Advisory Board and is the Founding President of the Association of Black Securities and Investment Professionals (Absip) and former chairman of the Micro Finance Regulatory Council.