THE INTERRELATIONSHIP BETWEEN THE SOUTH AFRICAN PRIVATE EQUITY INDUSTRY AND BLACK ECONOMIC EMPOWERMENT

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Abstract

This paper investigates the relationship between the South African private equity industry and government’s black economic empowerment (BEE) legislation. As the private equity industry of South Africa was formalised only in 1999, literature and data regarding the industry is limited. The research is therefore more qualitative in nature, and is based on a combination of media and journal articles, domestic as well as global surveys, personal communication with experts in the industry and other relevant research. The study suggests that the need to earn black economic empowerment credentials is one of the major driving forces behind the growthexperienced in the South African private equity industry, and at the same time this growth leads to an accelerated BEE transformation process, resulting in an interrelationship between the industry and BEE.

Keywords: Private Equity, South Africa, Economic Legislation

How to cite this paper: van Heerden, J. D. (2008). The interrelationship between the South African private equity industry and black economic empowerment. Corporate Ownership & Control, 5(3-3), 328-334. https://doi.org/10.22495/cocv5i3c3p1