Royal Purple Capital

We live in an astounding era of technology-driven transformation which is redefining how we see, communicate, collaborate, market and innovate – all in an incredibly short period of time. While revelling in our collective technological advancement, we do not want to lose sight of the fact that the future is a human future. And the fabric of humanity is woven by the threads of relationship and trust. We at ROYAL PURPLE CAPITAL, embrace the importance of this fundamental principle of human interaction.

Private Equity Opportunity in South Africa

The South African Private Equity 10-year-performance industry has proven to be remarkably favourable. This is relative to the listed market and evidenced by a pooled IRR of 15.8% as at December 2016.

The growth in funds under management – from R158.8billion in 2015 to R171.8 billion in 2016 – is reflective of both a growing industry and increased interest in the private equity asset class, from Southern African investors.

ROYAL PURPLE CAPITAL forecasts that South Africa is approaching the crest of a second wave of private equity growth. A wave where equity prices re-rate to levels more reflective of fair value. Where medium-sized entities seek growth capital to take advantage of opportunities available to them.

The National Development Plan 2030 spearheads the opportunity to invest in these medium-sized businesses, with the objectives of larger scale job creation and increased total returns.

We have chosen to focus on the mining sector which reflects this paradigm shift.   

Let us contact you

If there’s anything you would like to discuss, please send us your contact details and we’ll get back to you.

Mining in South Africa

This sector is the primary driver of economic activity in South Africa. It provides the quickest form of turnaround investment. Its ability to create multiple employment opportunities reflects its immediate multiplier effect. In addition, the redirection of liquidity which the sector offers is felt within the populace, as it stems right from wages and direct input purchases. Together with the ability to process, abundant opportunity exists, which is not only accessible to the local markets but also to the lucrative export sector – a source of solid and continual growth.

"Mining is the flywheel of the South African economy. When mining does well, it lifts many other sectors, those who supply inputs into the industry, and through the significant export revenue it brings back into the economy. "The converse is also true – when mining struggles, most other economic sectors also feel the pain." Chamber of Mines

Within the mining sector, our key focus areas are:
Mining Services Which Contribute To the Production of Ore
A new Harvard University report predicts that South Africa will sustain an economic growth of approximately 5% per year for the next 8 years until 2026.
Alternative Energy within the Mining Sector
Mining has a complicated relationship with alternative energy. Traditionally, the two might be viewed as rivals, with renewables such as solar and wind power vying for a slice of the South African energy grid
Manufacturing Within the Mining Sector
Novel forms of manufacturing have become vital to the new economy. We can go so far as saying that this is the fourth revolution which will redirect us to technology based solutions.