Investing in private equity is one thing. Learning how to select the private equity fund that’s right for your specific requirements is another. At IFSA, our main aim has always been to shine a guiding light on the world of private equity funds and help both individuals and firms secure results that far outweigh any traditional returns.
We have over 60 years of combined experience in the investment arena – actively seeking out pockets of excellence. The Cornerstone Capital Private Equity Fund presents such a window of opportunity, helping investors, IFAs and SMMEs maximise their own, unique potential.
Join us as we continue to unravel the mystery of the private equity space, shining light on the myriad of topics impacting investors, fund managers, and new entrants into the market.
Defining private equity
Private equity means capital ‘not listed on public markets’. It consists of investors and other funds that finance a handpicked portfolio of privately owned companies.
Private equity can also be classified as an alternative investment, which means it is not publicly traded and not as volatile as mainstream markets. Returns on private equity investing are generally much higher than traditional routes and are slowly starting to attract mainstream attention.
The goal with every new investment is to create a thriving enterprise that can deliver better returns for all stakeholders.
Unpacking the Cornerstone Capital Fund
The Cornerstone Capital Fund consists of two derivatives: the local private equity (PE) fund, and the international offshore fund. Together, they form the foundation of all IFSA’s investment activities. The first prioritises business in South Africa while the other focuses on global market opportunities.
The Cornerstone Capital Fund is available to high net-worth individuals, institutional investors, and other investment funds that seek to grow their capital at a steady rate with low market volatility.
The profile of the fund is independent of systemic market volatility. It offers investors who do not have the expertise or networks a unique opportunity to invest directly in private investment products as an asset class which are not easily accessible in the marketplace.
Does the Cornerstone Capital name bear any significance?
Trust starts with a name. The Cornerstone Capital Fund is a living metaphor for the keen similarities between construction, architecture, and investing. When the brand was being developed, we looked for a name that would be able to tell the story of the fund in the simple terms of a metaphor.
Designing a building from the ground up is surprisingly similar to building a business. In every instance, the structure’s foundation is the most important part of the building’s success. And the key component to ensuring a solid foundation is what is known as the ‘cornerstone’.
During the industrial revolution, cornerstones were seen as the first, immovable object around which a building took its direction and orientation. The same can be said of the business we conduct at IFSA – our fund provides an unshakable core upon which the success of a business is built.
How do the two funds compare?
The Capital Cornerstone Private Equity and its International counterpart, brings something new to the investment space where the potential upside far outweighs the potential upside of any traditional asset class.
The Cornerstone Capital Private Equity Fund focuses on unlisted companies in South Africa with the option to access opportunities in the rest of Africa. The Cornerstone Capital International Fund is unique – it received the highest equity allocation ever authorised in a Mauritius-based fund.
Similar to the private equity fund, Cornerstone Capital International is designed to yield stable returns over 7 – 10 years, moving steadily with low market volatility. The fund focuses on global opportunities, investing in offshore entrepreneurial businesses.
Together, both fund segments provide a combined resource for various entities and institutions to realise their best potential.
Who stands to benefit from the private equity fund?
We seek to create value for three distinct groups – investors, independent financial advisors (IFAs), and privately owned and operated businesses (SMMEs).
We believe these groups of individuals are uniquely positioned and hold a symbiotic relationship. At IFSA, we work to facilitate and cement a relationship between the three groups:
- Investors need a safe place to grow their money;
- IFAs need an investment manager they can trust;
- SMMEs need capital and other resources to grow and scale their business.
Are private equity funds more risky than listed entities?
There is always a risk in private equity. No reward will surface without it. But that’s where the skill, experience and resources of a competent fund manager can make the difference. However, even if you planned for every conceivable source of apprehension, could you have planned for COVID-19?
If we invested in companies in the hospitality industry, any potential upside could easily get lost in a downward spiral of negative growth.
What are the investment parameters of the fund?
The Cornerstone Capital Private Equity Fund focuses on investing in businesses that demonstrate superior historical performance. The fund has two distinct counterparts – local, and international.
The local fund is based in South Africa under Licence of the FSCA. It primarily invests in South African opportunities. In addition, the specific investment mandate also provides the option to expand into Africa. The typical investment horizon is 7 – 10 years, and returns are measured in ZAR.
Conversely, Cornerstone Capital International is an offshore fund that invests in global opportunities. Based in Mauritius, the fund operates under Licence of the FSC of Mauritius. Your typical investment horizon for the international fund is also 7 – 10 years, and returns are measured in USD.
When in doubt, please feel free to reach out
At IFSA, we do more than help clients understand the true meaning of potential. We help them see their own true potential. When you’re ready to talk about choosing the fund that is right for you, don’t hesitate to reach out. For more information on the latest performance metrics, download our fund fact sheet.
IFSA (Pty) Ltd Registration No. 2000/005153/07 An Authorised Financial Services Provider Licence No. 43337
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