HEP III is a generalist multi-sector private equity fund investing in unlisted SMEs in South Africa. The Fund targets SMEs operating in the economy’s high growth sectors such as information technology, telecommunications, business process outsourcing, payment & banking systems, healthcare and food processing. Investments range in ZAR 5.0 - 50.0 million into an expected 10 – 15 portfolio companies. The fund takes equity positions or invests in equity linked instruments with a view to exit, preferably via listing or trade sale, after a holding period of 5 years. The types of deals targeted are management buy-outs and buy-ins, expansion and replacement capital, and private investments in public equity (PIPEs). Some of these are expected to be black empowerment transactions.
HEP III is managed by Horizon Equity Partners (HEP) a Johannesburg, South Africa-based private equity firm founded in 1992, which manages multiple private equity funds.