Alternative investment firm Hlayisani Capital, which hit a first close for its Hlayisani Growth Fund (HGF) last year, has struck a deal to pick up a minority stake in Tractor Media Holdings, a South African digital outdoor media owner.
The money will be used to accelerate Tractor’s digital out of home (DOOH) growth strategy, allowing for the acquisition of key sites, new portfolios as well as investment in advanced technologies.
Led by Simon Wall, Tractor Media was established two decades ago and has since then grown to have a presence in over 350 sites, more than 250 digital screens, a National Transit business, the exclusive rights (in partnership) to the busiest tourist destination in Africa – The V&A Waterfront. It has four offices and over 40 team members.
Tractor is believed to be the first investment via Hlayisani’s new venture capital fund. The firm did not specify if it has just hit any fundraising milestone under it or if indeed has already raised the new fund.
The Hlayisani Venture Fund II launched recently and its investment mandate is primarily focused on South African linked businesses expanding globally. The fund will, however, also consider attractive investment opportunities in Southern Africa and the rest of Africa.
This comes more than one-and-a-half years after it marked the first close of HGF at ZAR350 million ($60 million then). This fund aims to bridge the funding gap faced by South African companies that need money between early-stage venture capital and traditional private equity. This fund is now closed for subscription. The fund aims to invest in high-growth businesses and is backed by Standard Bank and prominent South African family offices.
The HGF was the first fund offered by Hlayisani Capital, started by Reuel Khoza and Michael Jordaan.
Khoza is a former chairman of Nedbank Group Ltd, Eskom Holdings and GlaxoSmithKline South Africa. He also served as director of the JSE Ltd, IBM South Africa, Liberty Life Group, Standard Bank Group, Nampak Ltd and Old Mutual plc.
Jordaan is a wine farmer and former CEO of First National Bank, one of SA’s largest banks with a customer base of nearly 9 million. Since leaving banking he has made nearly 30 venture capital and private equity investments across various sectors through Montegray Capital and Angelhub Ventures.
The investment house has already been managing Endeavor’s Harvest Fund. It was brought under the umbrella of HGF. It has backed eight businesses—Snapplify, Gometro, Wyzetalk, LEAP, Opennetworks, Sudonum, Ikeja and d6 Education.
Launched in 1997, Endeavor was established to stimulate global entrepreneurial activity in emerging markets. In 2012 it introduced Endeavor Catalyst, a rules-based co-investment fund that provides equity capital at the venture and growth stages.
Endeavor South Africa opened its offices in 2004. To date, it has backed nearly 100 entrepreneurs in multiple industries across fintech, healthcare, technology, FMCG, agriculture, education and enterprise software and services.