Investment manager Ethos Private Equity has separated its Mid Market Fund as a spinoff, resulting in the formation of a new independent and black-owned equity fund manager, Infinite Partners.

The new fund manager emerging out of the spinoff process has a founding team that is 100% black-owned and with a 75% representation of women.

Ethos Private Equity said Infinite Partners would continue to manage “Ethos Mid Market Fund I” which raised R2.5 billion in capital commitments in 2018.

Ethos will own 25% of Infinite Partners and have board representation, Ethos said.

Pitsi, Sekhukhune and Matheolane have worked together for 10 years and have been involved with investments across various sectors and maturity levels.

Naomi Nethengwe, who will be principal and has been part of the Ethos Mid Market Fund team for four years, is also part of the founding team.

New fund mandates 

Speaking about the separation and future plans for the new firm, Pitsi said the Infinite Partner is well-poised to commence the process of speaking to investors to bring to fruition new fund mandates.

He said that these new mandates will incorporate long-dated capital, traditional and specialist funds.

Stuart MacKenzie, CEO of Ethos Private Equity, said the group he leads will continue to be a multi-fund platform with a significant presence across Africa.

“[It] will continue to pursue growth and diversification opportunities for its product offering and geographic footprint” he added.

MacKenzie said that the spinoff move and creation of Infinite Partners represents an “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,” he pointed out.

Ethos Private Equity is linked to JSE-listed and Mauritius-based EPE Capital Partners Ltd (Ethos Capital), which listed on the Johannesburg bourse back in 2016.

Ethos Capital invests directly into funds or co-investments, managed by Ethos Private Equity.