Aureos takes stake in financial services group Real People

Global equity fund manager Aureos takes stake in financial services group Real People

Global private equity fund manager Aureos Capital, through its Aureos Southern Africa Fund, has acquired a 7% interest in the rapidly expanding financial services group Real People Investment Holdings.

Aureos Capital is a leading international fund manager focused on emerging markets. The transaction will inject fresh capital into Real People to aid the expansion of its African operations.

Real People, a broad-based financial services company with a strong focus on lending to the middle and lower income markets, has net assets of R330m. It is busy expanding its services into neighbouring African countries and growing its retail suite, wholesale finance and acquired books divisions throughout Southern Africa.

Says Real Peoples Managing Director Johan van Rooyen:

"We are especially delighted with this transaction- and to be going forward with Aureos as a value-adding partner- because we know Aureos shares our enthusiasm and vision for the emerging market in Africa. The investment in Real People by a global fund, focusing exclusively on emerging markets, further enhances our ability as a group to raise and access capital: hence this development is an enabler which will help us achieve our growth objective of providing financial services to the middle-to-low income groups in Africa."

According to Real People, the Aureos investment underlines the groups positioning and growing stature in the financial services market. With more than 120 branches in South Africa, the group also operates in Swaziland, Lesotho and Botswana and a branch roll-out is imminent in Kenya and Tanzania as well.

Notably, Aureos is renowned for its stringent investment criteria and its proven investment model. Aureos specialises in providing expansion and buyout capital for businesses with prospects for strong growth and profitability across Asia Pacific, Africa and Latin America. Formed in 2001, the fund has raised and is managing US$570m in 24 funds, worldwide.

Adds Real People Strategy Director, Neil Grobbelaar:

"This transaction is a strong statement of faith in Real Peoples credit management capabilities and will enable us to achieve our growth objectives. It is also another step in the positioning of Real People as the pre-eminent financial services provider in the middle-to-lower income market. We are proud to have qualified for, and met, Aureos investment criteria and to be equal to the high standards and strategic development requirements that this fund requires of the entities it invests in.

Aureos, as a value-adding partner to Real People, has undertaken to deliver funding lines within certain time frames as well as to participate in the strategic direction of the group as among its provisos for investing.

Says Ron den Besten, Managing Partner of the Aureos Southern Africa Fund:

"We are excited about the prospects of Real People and are confident that the quality management team backed by a superior technology platform, will help us in our strategy to partner financial institutions in a Pan African roll out. In addition, we believe that as a result of Aureos global network, we can add tangible value to our investment in Real People."