Medu Capital has launched Medu Capital Fund III, a private equity vehicle to invest in small and medium sized enterprises (SMEs) across Africa.
The fund is targeting a $300 million at final close and has already received a $65 million commitment for the US Overseas Private Investment Corporation (OPIC). Medu III will seek to invest in profitable and established businesses with strong management teams, acquiring 15% to 80% equity interest. The investor will also look to enhance management and corporate governance standards.
Medu Capital has already been active in the SME space, backing South Africa-based courier pharmacy, Medipost Pharmacy. The company delivers medication to chronically ill patients across the country. In the three years since Medu’s investment, Medipost has tripled revenues and doubled profitability, delivering 200,000 prescriptions per month.
Medu invested in the company from its previous vehicle, Medu II, which had its final close in May 2008, at approximately $112million (R900 million). The fund has also backed a number of other South Africa-based companies, including Elite Truck Hire, a transportation company, Copper Tubing Africa, a manufacturer and supplier of copper plumbing products, and SARCO – which produces steel rolls and sleeves.
Also in the portfolio are Kawari, a pharmaceutical wholesaler, Vergenoeg Mining Company a fluorspar producer and listed construction company, Erbacon.
Medu is a Black Economic Empowerment private equity investment company, founded in 2003. The company is headed by directors Nhlanganiso Mkwanazi [pictured] and Ernest January.