David Pinnock and Yaniv Kleitman of Cliffe Dekker Hofmeyr discuss the progress of the private equity industry in South Africa, considering issues ranging from black empowerment to exit strategies.
The South African private equity industry is well established and, by emerging market standards, sophisticated. In terms of size relative to gross domestic product, the local industry compares favourably with those in most European countries.
The industry does not have a specifically designated regulator or its own industry-specific legislation. Applicable legislation includes the new South African Companies Act (which came into force as recently as 1 May 2011, replacing the old Companies Act of 1973 and introducing a new and modern era in the South African company law), the Collective Investment Schemes Control Act, the Securities Services Act, the Competition Act and the Income Tax Act.