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Ethos to Restructure Brait

South Africa-focused alternative asset manager Ethos has agreed to recapitalize Brait, a South Africa- and Luxembourg-listed investment holding company, in partnership with the company’s existing shareholders. Ethos Private Equity Fund VII and Ethos’ listed vehicle Ethos Capital will invest ZAR1.35 billion (approximately USD91 million) in the company, with Fund VII contributing ZAR750 million (USD51 million) of the total amount. The capital injection will form part of a larger equity rights issue of up to ZAR5.25 billion (USD355 million) with the aim of reducing the company’s debt on its balance sheet, refinancing the company’s revolving credit facility, and launching a new convertible bond fund to repurchase existing convertible bonds. Ethos Private Equity will become the new advisor to the business upon the closing of the Brait rights offer, which is expected to be completed in February 2020.