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GT Shield

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

Industry Charters

Financial Services  Charter

Code Series FS100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 100: The General Principles for Measuring Ownership

5. Private Equity Funds

 

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, are 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 is a B-BBEE 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.