Metier Capital Growth Fund II

The proposed project entails an IFC equity investment for the lesser of ZAR300.0 million or US$22 million, not to exceed 20% of total commitments, in Metier Capital Growth Fund II (“Metier II” or “the Fund”), a 10 year closed-end fund seeking to raise up to ZAR 3 billion. The key objective of Metier II is to construct a portfolio of investments diversified by sector and deal type, which collectively capture the attractive mid-market growth opportunity in Sub-Saharan Africa (“SSA”). The Fund will invest in 8 to 12 control or significant minority investments in mid-market growth and replacement capital transactions. Consistent with the investment strategy deployed by its previous funds, Metier II will seek to invest in high-growth opportunities, some of which may offer cross-border expansion throughout the region. The Fund will seek 50% exposure outside South Africa (“SA”). Metier’s investment themes build upon the strategy employed in the predecessor fund focusing on sectors that are set to benefit from positive demographic trends, rising investment in infrastructure services, and intra-regional trade. The strategy will have a SSA geographic focus, using SA as a gateway, and moving outside into the rest of Africa in concentric circles. The SSA strategy will thus be primarily buy-and-build with bolt-ons rather than individual standalone investments. The Manager sees opportunities in Southern African companies partnering with local companies in SSA to provide capital, industry expertise, customer relationships and management skills, to take advantage of the market growth opportunities. Metier’s focus remains on a similar fund size to their predecessor fund, and remains focused on mid-market opportunities.