André Roux - Lifetime Achievement Award

A

man whose vision has spawned opportunities for those working in this field of investment.

A

man who

has

strides of elevated recognition of the value of what private equity can bring

to

the business community of South Africa

and

to the value of this asset class.

A

man

who's

influenced many careers, even in this room. André Roux, we say thank you.

And

to officiate this part of the agenda, Samantha Porkeroy, former SAFCA board member and CEO of Scenari Capital.

Vu

Yon Toi, Chairman of SAFCA,

please

come and do the honours. Ladies and gentlemen, members and friends of SAFCA,

today

we gather to honour Mr André Roux

with

the inaugural André Roux Lifetime Achievement Award.

Let

us delve into why recognising our industry veterans is crucial. Preserving our collective legacy.

Our

veterans are the guardians of wisdom

and

legacy.

They

hold the keys to decades of experience.

By

honouring them,

we

safeguard our industry's rich history and ensure that the lessons learned continue to guide us.

veterans

play a pivotal role in fostering mentorship.

They

pass down their knowledge to the next generation. Recognising them ensures seamless knowledge transfer, allowing us to build upon their foundation. Upholding ethical standards. Veterans exemplify integrity.

Their

ethical conduct sets the bar for all of us.

By

acknowledging their contributions,

we

reinforce the importance of ethical practices within our industry. Inspiring adaptability.

Our

veterans have weathered storms and demonstrated remarkable resilience.

Their

ability to adapt in turbulent times inspires us all.

By

celebrating them,

we

infuse

our

industry with the spirit of adaptability. We express gratitude for the giants whose shoulders we stand upon.

Their

dedication and vision have shaped our industry

and

we honour their legacy.

South

Africa's private equity industry holds a unique position globally.

It

was an early pioneer in the establishment of the asset class. This early start

has

given rise to a deep and mature market,

providing

a solid foundation for growth and innovation. Moreover,

many

of our current industry leaders,

including

Sam, have cut their teeth in institutions established by Andre Roux and his peers.

Their

collective expertise

forms

the bedrock from which we will continue to build and evolve.

By

looking at our past, we gain insights into the future.

So

let us celebrate Andre Roux's indelible mark upon our industry.

May

his influence continue to ripple through generations, inspiring us to reach greater heights.

Thank

you, Andre Roux, for your enduring legacy.

The

standing ovations before, then we know we're on

to

a good thing today.

I

am

very

privileged and very pleased to be able to

be

part of presenting this award today to Andre,

this

very well-deserved award, and to be part of a celebration of 40 years of private equity in South Africa. So whilst I have been around long enough now to be considered grey hair in the industry, I do want to make it very clear that I am not going to reflect on 40 years of the industry.

We

are going to have a video that is going to help us to do just that.

But

I have been fortunate to have spent the last 18 years working with Andre, first at Ethos, and after that, starting and growing Samari Capital,

where

he mentored, advised, invested, and ultimately chaired our company.

I

also want to recognize all the people who are in the room today from Ethos, past and present, and all of our service providers. We've got Stuart McKenzie, who took over from Andre at Ethos,

and

Antony, and Michael, and Ed, and Titi, and Tseho, and Mauna,

and

Cam, and I

forget

who else. We might have got our R shots here. All of us, I think, will have a more personal meaning around this, but I know that the moment will be appreciated

by

everyone.

So

I want to start by welcoming Andre

and

his family and close friends. Notwithstanding health challenges, you chose to be here,

and

I think it's a sign of your deep commitment

and

connection with the industry and all of the people who are here. So you know, family flew in from overseas to be here with us today, and what I really hope, because I know that you guys know all of your dads' amazing achievements, but I hope that you will get to see firsthand the impact that he's had on this industry,

and

all of

the

people here and outside of the room who wishes they could be here, directly and indirectly.

So,

for those who know Andre, they know that he is not one for back-patting, okay? Andre is,

as

you will hear,

very

humble, very grounded,

and

not at all flashy.

I

remember being in the bar at Ethos, where I congratulated Andre on getting his brand-new Mercedes, and he was at pains

to

tell me how. No, this was a very old car that he had to get rid of now, and eventually he had to go and get this, you know, new Mercedes.

I

had to stop him and say, listen, we need hope. We are all working very hard here.

Give

us hope.

But

it's his character, and I deeply respect that, and I think it's something that we share.

It's

also wonderful to marry, then, this Lifetime Achievement Award given by SAVCA

to

a man who appreciates

these

more grounded elements

because

that is what we are all about at SAVCA. We are also not flashy. We are also all about

learning

and growth and inclusivity,

and

so I hope that you will see that in the presentation, but also in the things that follow it, that this has very much been an exercise in trying to distill these 40 years of insight and wisdom and lessons and stories and enjoy into something that the industry can actually carry forward. So,

we additionally will

have, so we're going to have a video now.

where our peers, going

back some way, is going to take us through a bit of some stories about Andre and some lessons learned,

and

then after that, we're going to do the award, and then SEPISO is going to share with you a website that you will be able to view more of these stories and insights

and

also be able to share any of your own reflections as you may wish.

Before

we start the video, I just want to thank SAVCA, SEPISO, thank you for your vision on this important occasion,

and

to all the people who helped contribute and put all of this together, the family and Sandy and Arlene, please pass on to Arlene, very much Chelsea, and, you know, much gratitude for making this happen.

So,

without further ado,

we'll play

the video.

So,

very often, people would talk to us some years ago, Andre and I as being the godfather of the industry, and then we became the grandfathers of the industry. But I think, to be fair to Andre, he was really the godfather and the grandfather. He really started it. He was the first to do it. He is the beacon of private equity, not only in

South

Africa,

but for the whole continent.

And

it was his vision

to

start the industry that has allowed it to blossom to what it is today. If it was not because of Andre seeing the gap, I'm not sure the private equity industry in South Africa will be what it is today.

I

think the origins of private equity probably go back to venture capital in the 1960s in the US, where people form small pools of capital to do normally venture deals. That evolved into the 60s and 70s. And by the time it got to the 80s, we were quite early. It had evolved in the UK and Europe,

but

we were quite close behind that. And I think that the spark wire industry was actually the disinvestment by multinationals in South Africa. So you find particularly American multinationals sold their South African businesses to management. And Andre and his team found a very profitable part of that. They supported these teams in buying great businesses at low prices.

So

Andre had a vision of becoming a sort of fund manager, private equity fund manager, third-party fund manager. We were a part, a 100% subsidiary of First National Bank.

And

so for Andre to go ahead and convince at that stage the bank

to

start a process, which will mean that we sort of raise funds from third parties, where the people in fiscal capital in that stage get incentivized based on things, which I think at that stage for the bank was very foreign, was actually very impressive. We had lots of challenges. We started raising our first fund, well, sort of external fund from foreign sources just before the 1994 elections. So for Andre to have a conviction and to have the, you know, belief in what he's doing, going traveling in America and raising money, just a major challenge and a major achievement.

Andre

and I were raising funds at times when the political environment and the macro environment in South Africa wasn't exactly friendly from our international investor perspective.

But

we were able, and, you know, mostly through Andre's kind of experience, be able to sell a story around South Africa and around private equity in particular, that it's a micro story. And despite that, you can get a benefit from tailwinds from, you know, when the macros are good and the politics is good, private equity is a much medium to long-term game. And even

despite that, we were able to convince investors to put capital to work in South Africa.

Andre

can be credited for really founding the industry. And, you know, what sits behind that is a number of firsts for the industry. So

I

think he did the first buyout in South Africa in 1984, and it was a business called Hudeco.

It

landed up delivering around 10 times money back to investors and an IRR of close to 200%. So a very auspicious start. But from there,

he

is also, he raised the first blind pool capital fund in 1992.

And

then he raised the first blind pool capital fund that had international investors in 1996. So, you know, I think those many firsts really do kind of allow him to hold the title or founder of the industry on the continent. Ethos, as an emerging market firm, faced so many challenges over the years, not only macroeconomic ones, but, you know, the political changes in South Africa. And what I recall about that is there was always the sense that there was a steady hand leading ethos through all of these challenges. And I've dealt with many, many private equity firms, multinational, pan-European, very, very large, prominent private equity firms.

And I venture to say that no single firm has dealt with so many challenges and succeeded so well amidst those challenges, as Ethos has done. And I attribute that entirely to André's leadership.

In

South Africa, the private equity industry has had to evolve in a highly complex and constantly shifting political and socioeconomic context.

And

moreover, to lead and to succeed in the industry in this country, one really needs to be able to master every aspect of the value chain, from

fundraising

to deal-making to value creation to exit, because we simply don't have the same level of specialization in this country as you would typically find in other developed private equity markets. André had the talent to be able to drive excellence in every part of the value chain. What André was really, really good at was ensuring that the pace of change in the organization was faster than the rate of change in the environment. and encouraging us as partners to always

think

self-critically and objectively about what we were doing that was going to continue to be relevant and continue to deliver returns, and what we had to stop doing and start doing. He really was a prolific reader, and that enabled him to kind of cut through all the noise in those really important moments, to have a real clarity of thought, without being dismissive. And that's probably what I would encourage everybody to do is read as widely as you can. And don't just read about private equity. He was a man that absorbed life, and art, and music, and all of these other elements. And I think that those were the pieces that made him a great investment professional.

It wasn't necessarily just the numbers. It was

terrifying walking into an investment committee meeting, knowing that André had the insight

to

pick up immediately on the one single thing that the deal team knew the investment hung up. That made you so much better going into these meetings, because you yourself knew what was important to focus in on.

André

came always across to me as one of the most polite and true gentlemen I have met

in

the industry.

He

has shown that this character strength, being respectful to everybody, is something you should do, the PE industry, but as a lever in general.

I

would say

André's character was of

a

person that is very hard working,

and

of a character where, especially when it comes to work,

he's

always very well prepared, he's a detailed person.

He

never was a person who would win things. According to who he is as a person, I think, is this deep integrity and an incredible sort of ethical perspective. He constantly reminded us that we were investing other people's money, that we were the custodians and fiduciaries of that capital, and that in every decision we took

and

every action we took, we had to put our investors' interests first.

André's character is probably the greatest thing, and it obviously extends to not just his character as an individual, as pertains to his own moral compass, how he conducts himself, his warmth, his openness, his humour. It's also how caring he is about his own family, and you can see what a fantastic family man he is.

People

may think

that

André is an introvert,

but

it was particularly during COVID that I discovered how people-driven André is at heart. He was literally clawing the doors to get out and interact and engage with people.

André is one of those deeply authentic people.

You

know, you always knew where you stood with André. He was always measured, always thoughtful, always diligent, always well prepared for meetings, and always wore suit. That was André.

He

also has an incredible fun side.

We've

had many, many spirited celebrations in the firm over the years. One of the rules we had in our firm is that at AGMs, no partners were allowed to go to bed

before

André, and he's got the constitution of a buffalo, and so frequently we'd have partners going from the bar to the first team.

I

didn't realize in the time that I was working with André as an executive in the ethos team just how involved and how much he was touching so many other businesses outside of the ethos portfolio. But I learned this firsthand when I eventually decided to move on from ethos, set up my own business, Data Diligence. And I reached out to André soon after founding that business, and he must have listened to our pitch. I don't know, 10, 15 times. He went through our pitch deck, he marked it up. Anybody that's worked with André knows he's got this very crazy handwriting, quite spidery, and he writes all over things. And he puts a dot here and circles there.

And

he took this time to do that for me, and he didn't need to do it. And that generosity was just amazing. André has been generous with his experience and with his wisdom.

The

guidance that I got from him in the early days of our life as SPA, that guidance has been invaluable to me and to my colleagues and has had a big impact on my life and the life of many professionals who have entered this space. I will be forever grateful for the partnership that I had with him.

The impact that he has had on my career and my life

has

been profound and immeasurable. And that Sonari is here today because of him, not just because of the generous

wisdom

that he shared with me and my team, but more so

because

he believed in us. He went from mentoring and advising us

to

then investing

and

ultimately chairing the board at Sonari Capital.

Setting up Omba with my co-founder, David Pearson, we met with André, you know, just to talk about, you know,

what

we were up to, our plans. I'll never forget, he was the only person we met who went through every single page of our presentation deck in detail asking questions. And what was scheduled for an hour meeting ended up being nearly a two hour meeting.

I met André first when I was probably a first year candidate attorney doing

probably some very small job on a deal for Ethos at that time.

And

I met him at a closing.

And

I remember that he walked around the entire room

and

thanked every single person who had played a small or large part on that transaction.

And

it makes me think of that Maya Angelou quote that people will forget what you did, they'll forget what you said,

but

they won't forget how you made them feel. And in my experience of André from that day to the present day

is he always treats everybody with the exact same amount of respect, kindness and courtesy.

And

I think that's probably my most enduring experience

of André.

I

think what new leaders can learn from André is that you have to be a scholar

in

your own profession. That means read a lot,

you know, consult with your peers.

And

that's one of the ways to stay on top of your game is to

read and read and read to understand what's happening in the market. The other lesson that I've learned from André, especially in private equity, is that although we've got a commitment period to invest the capital that has been allocated to managers, that

if the

environment

is not conducive for investment, then it's OK

to

not invest

and

return the capital

to

investors. What I've learned from André is just, you know, how prepared he was for everything. So if we went into even internal meetings, he would have read all the reports, knowing all the background, knowing all the details. And, you know, he'd always have said, even if we go into negotiations, the other guy might be louder and he might make more noise and things like that. But if you're prepared and you've got the facts, you're going to win.

André

interrogated everything,

but that

was the foundation

for

the disciplines around rigor

that

all of us who have the opportunity to work closely with him will get to carry forward

for

the better success of the industry as a whole.

Private

equity has become a big industry globally, and I feel that South Africa has evolved quite closely with it, in lockstep with it. It's definitely brought a few things. One is it's brought foreign capital to South Africa in quite big proportions. It's also brought a way of governance where typically private equity owners are quite intense about management plans and forecasts and business plans and making businesses work. So I think that that culture has also got embedded into our system in South Africa.

Capital we raised and the investments that we made were mostly into growth. And with companies to grow, they will need to hire more people and they will need to spend capex bringing in machinery, plant and machinery.

So

that benefits South Africa in that you're creating capacity both in production and also you're creating jobs that are much needed.

When

ethos was established a very, very long period ago, you know, that democracy was only just coming through. You saw the first black economic empowerment transactions. You saw as businesses were divesting from South Africa, you know, local money was buying these assets. And Andre played this

fundamental

role in in that happening and enabling enabling both the acquisition of South African business by South African money initially. But then the reintroduction of foreign direct investments into South Africa through the vehicles, the, you know, the fund vehicles that ethos put in place, particularly once we were we had international LPs.

And

that impact is so wide. It's you it's,

you

know, if you think about dropping a pebble in a in a pond that the ripples are off far and far and wide. And I don't think Andre dropped a pebble. I think he dropped a boulder.

On

my side here from Cologne, I think it is one of the most well deserved achievements being given to somebody in South Africa.

I

fully endorse this and

wish

Andre all the best going forward.

And

I think he will

remain

a true role model for players in the industry.

I

think the Lifetime Achievement Award is long overdue. I think if I could name any one person who has been a leading light in South African private equity, it's Andre. He's been there again through so many iterations when they had to become independent from their banking relationship. And

they've

been through everything. And Andre was always at the helm and always was a very strong hand. And so I think this award is so well deserved.

Thank

you very much. Andre, as you've heard, has a strong love for art and music.

And

in keeping with that love, we've determined that the appropriate gift

would

be a piece of art from an up and coming artist. And this is a piece by an artist called Stephen Langer.

And

we'll ask Paul

to

come up and accept the award on behalf of Andre and give us a few words. Thank you. It's truly an honor to stand here today.

Ladies

and gentlemen, regrettably my dear old dad, bless his heart, is currently experiencing some technical difficulties in the vocal department. No, he hasn't lost his voice to an impassioned debate or a karaoke mishap. Rather, it's those pesky respiratory challenges that come with his ALS diagnosis.

But

for real, dad, you've been a true warrior and we love you so much. So in his place, I, Paul Rue, his eldest son,

have

been designated as his official spokesperson

for

the day.

As

we gather to celebrate the extraordinary achievements of my father,

I

am deeply moved to reflect on the remarkable journey that has led him to this momentous occasion.

I

can't help but feel a mix of pride,

gratitude,

and let's be honest, slight panic

about

having to follow in his footsteps.

You

know, from the onset, from the outset, sorry, my father understood that success is not merely bestowed upon us.

It

is earned through unwavering dedication

and

relentless pursuit of excellence.

Despite

facing countless challenges along the way,

he

remained steadfast in his commitment to realizing his dreams

and

aspirations embodying the true spirit of resilience and fortitude. Reflecting on the early days of his career, my father often speaks of the challenges he faced while working at Barclays Merchant Bank.

Yet

it was during these formative years that he forged

friendships and

gained a profound appreciation for the intelligence

and

hardworking nature of his colleagues.

It

was here that he vowed

to

work even harder, driven by a relentless desire to exceed expectations and carve out his own path to success.

As

I stand before you today, I am filled with an overwhelming sense of gratitude for my father's selfless dedication

and

unwavering sacrifice.

He

has provided for our family in the most incredible way,

enriching

our lives with love, laughter, and boundless opportunities.

We

are forever indebted to him for his tireless work ethic,

his

unwavering commitment to excellence,

and

his profound love

and

devotion.

When

I asked my dad about dealing with difficult seasons, and Dwayne alluded to this as well, he imparted a timeless lesson

to

stay focused

on

what needs to be achieved.

This

steadfast resolve has been the guiding principle that has propelled him through the highs and lows of his illustrious career, enabling him to overcome obstacles with grace and determination.

They

say that adversity brings people closer together,

and

I can only imagine the kind of bond that forms when you're all scrambling to meet deadlines while simultaneously trying to figure out how the new copy machine works.

Today,

as we sit and enjoy this momentous occasion, I'm reminded of the invaluable support and guidance provided by organizations such as the South African Venture Capital and Private Equity Association.

Their

unwavering commitment to promoting excellence and innovation within the industry has been instrumental

in

shaping my father's journey and inspiring countless others to reach for the stars.

My

dad did say that he does regret not being able to dedicate more time to guiding SAVCA

over

the years.

As

a board member of the International Emerging Private Equity Association based in Washington DC,

his

responsibilities demoted much of his time,

leaving

him with limited availability for deeper involvement. I would also be remiss if I did not extend my heartfelt gratitude to everyone who has made this event possible.

To

Sam and the other organizers and everyone here at Cavali who have worked tirelessly behind the scenes to ensure that today's celebration is nothing short of spectacular.

Your

dedication and hard work have not gone unnoticed and we are deeply grateful for your contributions.

Finally,

my dad would like to thank all of you

who

participated in this incredible presentation in honoring his achievements.

He

is deeply moved and forever grateful for your recognition.

In

closing, I extend my deepest gratitude to each and every one of you for joining us in celebrating

my

father's lifetime of achievements.

May

his legacy continue to inspire us all to reach for the stars, to pursue our dreams with passion and determination

and

to never lose sight of the values that truly matter. Thank you and let's celebrate my dad.

How

Andre modeled what is possible when we allow our creative sight was presented to him as we indicated is sourced from a young local artist who was raised in Mokopan. Andre, thank you for allowing us to honor you.

Thank

you for creating a blueprint for all of us who are intent on utilizing the spaces we occupy to make a marked difference.

We

thank your family for generously sharing their time,

which

enabled you to set the asset class on a path where we can now look back and marvel at its pioneering nature.

There

was a small team of individuals who put in countless hours to make today possible and we are exceedingly grateful to them. Some of whom are here and some who could not be with us today.

Purpose

begets purpose.

This

message caught my eye recently, reminding me that unless leaders are able to articulate their own personal purpose

and

navigate their organizations with this heightened level of consciousness,

they

will not be very effective at embedding their organization's purpose.

I

do hope that we will all leave this conference feeling richer, more inspired to uncover our personal purpose and more determined to lead purposeful organizations.

We

heard from many industry players who responded positively to the call to take us through the journey from when the first ever PE led acquisitions were made by ethers

and

they shared their lessons with us.

And

as we celebrate many, many firsts, we want to make you all a part of this journey.

We're

very proud to announce that Safca will be launching its annual GP awards.

Every

year, in recognition of the huge impact that our members are making,

we

will recognize deserving GPs. Details of these awards and the process that will be followed will be shared during the course of the year.

So

please do look out for the mailers, website updates, as well as our social media.

Even

more exciting and meaningful and in celebration of Andre's love for the arts

and

his absolute zest for life,

we

would like to share that whoever the candidates are who are winners of the award, they will get to keep the statue which has been donated by Andre. He will hopefully share with that candidate the story behind the statue.

And

they'll get to keep it for a year so it will become a roving award.

As

I said, we'd like to invite you to be a part of this movement.

You

will see up on screen as we break for lunch, a QR code that invites you to share with us lessons learned, your own experiences, and whatever you would like to share with up and coming private equity professionals. This microsite will also be shared on our mobile app.

And

so we hope that you will be able to share generously as Andre has done with us today. Thank you all. We may break for lunch.