AI-dedicated GP targets South, Southeast Asia
A group of artificial intelligence (AI) investors in Africa have launched a new Singapore-based private equity firm, AI Capital, that will invest across South and Southeast Asia, as well as Africa.
AI Capital is a partnership between US emerging markets asset manager Rohatyn Group and Johannesburg-based Ethos Private Equity, which is touted as the largest PE business in sub-Saharan Africa. Rohatyn acquired Ethos last November, creating an entity with around USD 8bn in assets under management and some 400 institutional LP relationships.
AI Capital’s founders include Nic Kohler and Roger Grobler, both founding partners of Ethos’ AI programme, which raised two vintages starting in 2018. Ethos AI Fund had some experience targeting Asia, with investments including Philippines-based digital bank GoTyme.
The other founders are Michael Jordaan (pictured), who founded South African VC firm Montegray Capital in 2013, and Willem Roos, an AI entrepreneur who has received investment from Montegray. Prior to his career in PE, Jordaan was CEO of First National Bank, one of South Africa’s largest banks.
“AI has been around for 60 years, but it has suddenly reached a tipping point, as demonstrated by the rapid adoption and use of ChatGPT,” Jordaan said in a statement. “As a team, we have reflected deeply on how best to invest behind this revolutionary technology and concluded that the greatest returns will be generated by companies using AI, as opposed to building AI tools.”
AI Capital said it will make early-stage investments in businesses where AI enhances investment returns while creating long-term sustainable value and social impact. It will leverage a partnership with Standard Bank, Africa’s largest bank, which will act as the GP’s sole investment bank and advisor. Standard Bank has been instrumental in structuring and fundraising for AI Capital.
There are currently five companies in the portfolio, all of which were previously backed by Ethos AI Fund except Rain, a South African 5G provider founded by Roos. They also include Singapore-based Tyme, a digital bank that owns 40% of GoTyme and is active across South Africa and the Philippines. Tyme raised USD 180m in 2021 from the likes of Tencent Holdings, CDC Group, and Apis Partners.
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