81 Finance Monthly. Investment currently in and how additional capital will play a role in the growth of the business. Management plays a critical role in our decision. Without good management, the transaction will, most of the time, just be too risky. In what ways does NIO Capital contribute to the growth and development of its portfolio companies post-investment? NIO Capital contributes to growth in our investments through our deep sector knowledge of the sectors we have identified to be on our balance sheet for the long term. We only invest in sectors we understand thoroughly and have the in-house skills to add value to these investments. How does your firm approach Environmental, Social, and Governance (ESG) factors in its investment decisions? The firm has an ESG policy that we strongly believe in. The African landscape makes it difficult to navigate through these dangers, but through our extensive network in Sub Sahara Africa and the UAE we can quickly assess any possible investments that will not fall into our framework. What trends are emerging in the private equity and financial services sectors as we move forward? How is NIO Capital preparing to navigate these changes? In South Africa, there have been some regulatory changes where the regulators will implement Regulation 28 of the Pension Funds Act, which imposes limits on infrastructure investments, and the investments must be reported to the Financial Sector Conduct Authority. Direct infrastructure exposure across all asset categories cannot exceed 45% of a fund’s total assets, previously 30%. New limitations on direct asset infrastructure exposure across all categories of a fund’s total assets. PE asset allocation has been increased to 15% from 10%. South African laws are evolving to ensure we know exactly who we’re dealing with in each transaction. FICA(Financial Intelligence Centre Act) now requires fund managers to conduct deeper due diligence on all beneficial owners and disclosure, which could include due diligence on the ultimate beneficial owners of the investors in a fund and transactions. Nico Oosthuizen CEO of NIO Capital
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