Emerging markets private equity firm Aureos Capital has taken a 30.4 percent stake in South African IT company Sandbox.
Sandbox has an annual turnover of R100million and its helps integrate software for clients mainly in the financial sector. Aureos could not be immediately reached for comment.
The firm is investing R32 million ($4 million; €2.6 million) in Sandbox and has been joined in the deal by undisclosed black economic empowerment partners, who have taken a 20.4 percent stake in Sandbox as co-shareholders with Aureos.
Ron Den Besten, managing partner of Aureos, said the decision to seek black partners was so the company could service South African customers with black economic empowerment procurement requirements.
The South African legislation that positively discriminates towards black people is an attempt to level inequalities caused by the country’s apartheid past.
Last month Aureos launched its fundraising efforts for a targeted $400 million Africa fund. It joined firms such as Emerging Capital Partners and Actis, which have widened their continental fundraising efforts to target the whole of Africa.