Brait profits from buyouts

Brait’s profits increased on the back of a 40.1 percent rise in takings at its private equity unit.

Brait’s operating profits were up 12 percent to $28.9 million (€19.9 million) from $25.8 million, in the six months up to 30 September, in comparison with the same period last year, according to the firm’s interim results.

Its private equity profits were up to $20.3 million from $14.4 million.

The rest of the sum was divided between $2.3 million from corporate finance, $2 million from specialised funds and $4.3 million from miscellaneous group investments.

The firm made a return on equity of 35.8 percent. Its dividend was up 14.7 percent to $0.09 per share. The firm’s net asset value stood at $1.80 per share, which was up 17.5 percent. The firm’s assets under management had also gone up 14.2 percent to $1.3 billion.

Last month Brait bought domestic baker Premier Foods from the Foundation for African Business and Consumer Services for R1.5 billion ($215 million, €152 million).

South Africa has attracted sizable interest from global private equity houses, which have entered the market. A consortium led by Ethos Private Equity and Goldman Sachs bought Gold Reef Resorts, a casino operator, for R11.4 billion in September despite the liquidity problems in the global credit markets. This was Goldman’s first private equity investment in South Africa.

Brait’s fourth fund raised $937 million last year, while Ethos raised a $750 million fund at the same time.