The R1 billion Venture Capital Fund of Funds (VC FoF), a partnership between government and business aimed at fostering economic growth, has successfully completed its first close, according to the SA SME Fund.
Investor commitments totaling R600 million have been obtained for the fund, exceeding its intended goal of R500 million. With institutional and pension fund investment, the VC FoF has established itself as a leader in the venture capital asset class.
It also contains capital commitments from the department of research and innovation, the Consolidated Retirement Fund for Local Government, represented by Sukha and Associates, and a first loss capital layer supplied by the SA SME Fund and USAID. The SA SME Fund has already made investments in 16 vehicles that include venture capital, debt, and equity.