South African venture capital fund Futuregrowth has announced its intention to launch its Futuregrowth High Growth Development Equity Fund (HGDEF), targeting investments in early-stage businesses that will have a strong developmental impact.
Futuregrowth is a leading developmental investor and South Africa’s eighth largest asset management firm, with over 50 fund products, more than 25 years of track record, and a staff complement of over 100.
The Futuregrowth HGDEF will form part of Futuregrowth’s suite of developmental investment funds which cover a range of impact areas such as infrastructure, social services, clean power, agriculture, regional development, and more.
The fund will sit alongside the Futuregrowth Development Equity Fund (DEF), which has accumulated a 16-year track record of investing in developmental unlisted equity.
“Through the DEF, we have been investing in early-stage equity transactions for over nine years,” said Amrish Narrandes, head of private equity and venture capital at Futuregrowth.
“The new Futuregrowth High Growth Development Equity Fund aims to support South African entrepreneurs who push the boundaries with innovative technologies that change how we live. We believe that by backing South African startups, we can play our part in job creation and in growing our economy.”
Born out of the DEF’s strong investment process and developmental focus, the Futuregrowth HGDEF will seek to invest in a range of investments, including early-stage or highly-scalable businesses that offer new services or products, niche markets, or disruptive technologies in growth markets. Futuregrowth aims to support businesses driven by excellent teams in need of capital to help them grow. The Futuregrowth HGDEF will seek investment opportunities from venture capital to early-stage private equity, as well as other special opportunities.
“We have been considering an early-stage equity fund for several years, watching the evolution of the South African market, considering South Africa’s strategic position for disruptive enterprises, and investing in several high-growth equity transactions, and we believe the time is right for a risk-seeking offering,” said Andrew Canter, chief investment officer of Futuregrowth.
