Speaker 0:
Hello and welcome to this insight session. I'm joined today by Sabio KUBI, the chief executive officer at the South African Venture Capital and Private Equity Association. Welcome, Sio. It's a pleasure to be hosting you.

Speaker 1:
Thank you. Chloe, Thank you for having me. I'm looking forward to our chat.

Speaker 0:
So so s a FA has recently hosted their annual private equity conference. Take us through the significance of the conference, its objectives and how these objectives are aligned to s AC.

Speaker 1:
Yes, Um, we had our annual PE conference in May, and it was a huge success. It's a very, very important event on the PE calendar, over and above it being an important event for s a FA. Right, Um, And and the reason for that is that it It touches on so much

Speaker 1:
of what we do and what we stand for as an association. So it touches on our objective to promote the asset class it touches on promoting, um, capital raising for PE. It touches on training and capacity building our members. Um,

Speaker 1:
it touches on also creating a platform for our members to network with each other, as well as to network with, um investors as well. So it is quite an important one for us. Um, yes, for those reasons that I've just mentioned. So

Speaker 0:
So So then what sets this conference apart and why was this year's theme resilience?

Speaker 1:
So it was obviously my first conference. Um but I think what sets it apart is that it is the one conference where PE doesn't have to fight for space on the agenda.

Speaker 1:
It is a conference where we know that everybody who is in the room is either interested in, has an appetite for or is actively invest investing in PE. So that, I think even psychologically for our members, is quite important because they know that the investors who are in the room are open to having a conversation around the asset class. And there isn't a lot of work that they must do right to convince them.

Speaker 1:
And I also think from a content point of view, it is jam packed. It covers the full life cycle of PE, and it is the one conference where we've got experts in the, um in the asset class. So I do think that's what sets it apart. And our theme for this year was also quite timely in my view. I mean, at a time when so many of us are just feeling

Speaker 1:
like we've got so much to be despondent about in our country, it was important for us to firstly, to celebrate how far the industry has come and the positive shifts that have been made by the industry. I I even said it in my welcoming to say, you know what? As much as there's a lot that's not working, we must celebrate the fact that there is renewed interest in new markets. We must

Speaker 1:
celebrate the fact that African private markets did fantastically well in terms of volume of deals and value of deals. We must celebrate that we are seeing positive movements in S A as well as far as infrastructure and PE are involved. So there was a lot to celebrate in that sense and and a lot that demonstrated how resilient the asset class in the industry have been.

Speaker 1:
But I think more importantly, we didn't just spend that time just looking backwards right

Speaker 1:
for us. That theme was also about saying we are at a time in our country where we need action now you know, there's there's lots that needs to be done. And we were of the view that for a lot of that to happen and to happen at the pace that we want to see it happen. We need resilient leaders, resilient teams, resilient organisations and partnerships. So that was really the thinking behind that theme

Speaker 0:
to be. So perhaps you can take us then, through some of the key panel discussions that took place at the conference and what it means for the current and future states of the private equity sector.

Speaker 1:
Sure. Um, thanks for that question, Chloe. I think two panel discussions that stood out for me were our very first one. So normally, how we've done it in the past is we've we've kicked off the conference with a regulatory panel. But this time it was a different type of regulatory panel because we actually had pension funds that were unpacking r 28

Speaker 1:
and what it means. So that really, really, in my view, set the tone for the conference and it was appropriate that we started off with that panel. Um, our panellists were, as I mentioned, pension funds as well as representatives from multi managers as well. And what I believe they did really well.

Speaker 1:
Firstly, they unpacked what these amendments to r 28 mean for them. And they spoke a lot about how these amendments are really just creating flexibility for them to do what they've always felt is important, which is to invest

Speaker 1:
in a manner that responds to the needs of their members. And what are those needs then? Those members are interested in inequality and finding solutions to inequality, to unemployment, to climate change. So the view that came through from pension funds were, firstly, that they welcome these amendments because these amendments,

Speaker 1:
through the increase of those thresholds towards private equity towards hedge funds, firstly, they make it possible for those of them who invest in both to then continue to do that better. And also, secondly, the the definition around infrastructure, et cetera, also then, underscores the importance of infrastructure, which for them is also quite an important, um, sector.

Speaker 1:
And what I got is my main take out was that there is commitment from them to invest in S A. There is an overwhelming need and they realise it to invest in PE or and alternatives. Broadly speaking, um, and that, um they welcome these, um amendments.

Speaker 0:
So the then what does s AFC have planned for the second half of this year As it continues to advocate for the private equity sector?

Speaker 1:
Yes. So interestingly enough, um and this is linked to the R 28 discussion as well some years ago s a started work where it ran a diagnostic study in partnership with intelligence and it was wanting to find out what the perspectives are out there or the perceptions rather are out there around PE and V C. And so a number

Speaker 1:
All of our stakeholders were interviewed And what we found in that diagnostic study was that they are hugely divergent views around PE and V C. If everyone looks at all our various stakeholders and to the extent that there are also stakeholders who have quite negative perceptions around PE and V c. But more importantly, a lot of those perceptions when they were being unpacked were really based on

Speaker 1:
how what is happening in PE NBC in more developed markets. And so what that told us as an industry body was that we really need to lead the conversation around a better understanding of the asset class, sharing good

Speaker 1:
data around the role that PE and V C play in our economy and creating a platform for better, more constructive engagement. So we did, um, then launch this very interesting campaign that we call the Investing for Growth Campaign,

Speaker 1:
which aims to shift the perception and tell the story of PE and V. C. So that is what we will be focusing a lot on in the second half of this year, over and above doing business as usual, of course, which is making sure that we advocate for a more conducive regulatory environment and still carrying out our training, our networking sessions, et cetera

Speaker 0:
to be so thank you very much for sharing your insights. We appreciate your time.

Speaker 1:
Thank you so much. Chloe. It's been wonderful chatting to you.