Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 100 : The General Principles for Measuring Ownership

5. Private Equity Funds
Purchase cart Previous page Return to chapter overview Next page

 

5.1)A Measured Entity may treat any of its ownership arising from a Private Equity Fund as if that ownership were held by black people, where the Private Equity Fund meets the following criteria:

 

5.1.1)more than 50% of any Exercisable Voting Rights associated with the Equity Instruments through which the Private Equity Fund holds rights of ownership, be held by black people;

 

5.1.2)more than 50% of profits made by the Private Equity Fund after realising any investment made by it, must by written agreement, accrue to black people;

 

5.1.3)the Private Equity Fund manager must be a BEE Owned Company as defined; and

 

5.1.4)more than 50% of the value of funds invested by any Private Equity Fund must at all times be invested In black owned enterprises that were at least 25% black owned before the investment of the Private Equity Fund.