RH Managers raise R2bn to boost SA’s social and energy infrastructure

In Johannesburg today, 22 August 2023 - RH Managers (RHM), a Johannesburg-based private equity and infrastructure investment firm is on a fund-raising drive for a R2bn Social Impact Fund to boost South Africa’s healthcare and energy infrastructure.

Although far more developed compared to its African country peers, latest statistics indicate that South Africa will have an infrastructure investment gap of 4.8 trillion South African rands ($293 billion) by 2030 unless it increases investment in infrastructure to meet the targets set under the National Development Plan.

RH Managers, through its array of infrastructure funds, intends to fill the chasm, off the back of an increasing quality healthcare, affordable housing, and reliable energy demand. The Fund’s mandate is to invest in social infrastructure encompassing healthcare, housing, and renewable energy, thereby making them more accessible and affordable to the greater population of South Africa.

RH Managers, with a pool of investors from both local and international limited partners, is the second largest black private equity firm by assets under management (roughly R5billion) in South Africa.

The firm plans to have the fund’s first close in December this year and the second close of the Fund is earmarked for June 2025.

The launch of Fund 3 follows hot on the hills of RHM having previously launched and achieved success in three healthcare funds that raised over R5 billion in debt and equity capital to date.

RHM seeks to incorporate sustainable finance, and environmental, social, and governance (“ESG”) considerations in its investment decisions to enable improved outcomes for society and returns for investors.

The RHM team has amassed extensive experience in identifying and structuring acquisition opportunities, in both the green, brown, and later-stage investment areas. These investments have involved sourcing investment capital (leverage and equity), constructing, and commissioning processes.

Quinton Zunga, co-founder and CEO of RHM and RH Group said, “We are quite excited about the launch of Fund 3, and we believe the market will respond positively to our offering, not only because of the attractive long-term financial returns provided by infrastructure assets but also the positive development impacts that these have on societies. We will employ expertise and lessons learned from prior funds to construct a balanced portfolio that will deliver measurable social impact and maximise returns for our investors.”