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Private equity performance in particular is often seen as opaque relative to listed markets. One reason for this is the use of internal rate of return (IRR) as a measure. However, the reason private equity uses IRR is not to be obtuse. It is the only way to accurately reflect the return that limited partners – investors – receive on their money. And it’s important to understand why this is so different from how returns are calculated in listed market.
Read MoreNo investor can ignore the question of fees and their impact on returns. Whatever investment managers are charging must be reasonable, and justified. Evaluating fees in private markets products can be a lot more complex than in the listed market for a number of reasons.
ReadThe most recent Preqin Women in Alternative Assets Report shows that the global female participation rate in the Alternative Assets class stands at 20.9%, an increase of only 2.10% from 2017. These figures not only highlight the current and historical lack of female representation in Alternatives, but also sheds a light on the slow rate at which women are entering this space. When narrowing it down to global Private Equity participation, women currently represent 20.50% of those employed in the space, up 2.61% from 2017. Although this is a shift in the right direction – a different picture emerges when looking at the roles occupied by women in Private Equity. As it currently stands, women make up 12.90% of senior management globally, from 9.41% in 2017. However, women in junior positions increased from 26.4% in 2017 to 32.10%, a significantly higher rate than that of senior positions. This indicates the continued underrepresentation of women in senior positions signaling the lack of women representation in decision-making positions.
ReadThe world becomes a better place when human beings – whether inside or outside of corporate settings – behave in a way that benefits society as a whole. In past decades, businesses have not needed to engage with any drivers other than the bottom line, but those days are long past – they too need to start operating in a way that has a positive impact on society.
There can be no doubt that infrastructure -- particularly in the water, telecoms, waste, and energy sectors -- will be crucial to Africa’s ability to economically recover from the fiscal ructions of the past two years.
Not long ago, six of the world’s 10 fastest-growing economies were in Africa, and the continent was on track to see six per cent-plus growth up to 2023. Today, predictions from the World Bank suggest growth will remain low at just under four percent in 2022 and 2023.
ReadAsk anyone in business what the past two years have been like, and you’re met with a less than rosy report by most.
ReadTwo and a half years ago, Thuso Incubation Partners (Thuso) was founded to discover, support, create and elevate the next generation of black-owned private market asset managers. Today we are proud to be the most scaled and impactful incubation platform in South Africa, having onboarded no less than 10 teams across a diverse range of industry disciplines.
ReadIn start-up circles, you’ll often hear investors talk about how important it is to “bet the jockey, not the horse”. The gist behind this saying is that a great entrepreneur can take a moderately good idea and ride it to success, while an average entrepreneur can run a great idea into the ground. But when it comes to incubation, backing the right team might be even more important.
ReadFor years now, we’ve been told that entrepreneurship and small businesses are key to economic and job growth. But all too often, small businesses aren’t put in a position to succeed. That’s especially true in South Africa. According to the National Development Plan (NDP), small, medium, and micro-sized enterprises (SMMEs) will contribute 60-80% to GDP increase, and generate 90% of the 11-million new jobs in our country by 2030.
ReadOver the past couple of years, ESG was one of the most hyped terms in the investment space. Standing for Environmental, Social, and Corporate Governance, ESG refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. It not only represented a new form of investing that was kinder to the planet and more ethical at a societal level but also promised greater returns than traditional investment procedures.
ReadOver the past decade or so, Thuso Partners has witnessed the South African economy trapped in a cycle of low growth, coupled with recessions. Already in a fragile state, it has been brought to the verge of collapse by the Covid-19 pandemic. The few stable areas of the economy that were holding things up (such as tourism) were immediately shut down as the country tried to stem the tide of a deadly disease.
ReadWhen it comes to transformation in South African business, doing things the way they’ve always been done simply isn’t tenable. New approaches are needed. That’s what makes Thuso, a ground-breaking incubation platform in the South African asset management space, so exciting.
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