As described in the section entitled “Principal Investment Fund”, Umbono’s first proprietary investment portfolio (Fund #1) has established a successful track record in natural resources investing across Africa and North America.
The global financial crisis has produced even more compelling investment opportunities leading Umbono to launch a second investment portfolio (Fund #2) with a similar strategy to its principal Fund #1. The fund scope will encompass:

• Private equity and venture capital transactions in the $5m-$40m range
• Energy and natural resources covering precious, industrial and energy minerals
• Focused Africa coverage
• Equity or hybrid debt-equity investments via MBO/delistings, strategic private investments and “earn-in” transaction types

The planned fund size is $200m with 7-10 target investments averaging $15m - $25m each. Umbono has committed to invest $20m of the targeted $200m, while a further $30m has been committed by a South African state owned strategic partner, which will also serve to reduce country risk and provide deal flow and co-investment opportunities.

(Umbono is registered with the Financial Services Board as a financial services provider)