South Africa’s private equity firm Ethos has launched a R1 billion artificial intelligence (AI) fund targeting businesses that will benefit materially from AI algorithmic decision making.
The Ethos AI Fund I is targeting R1 billion and already has R600 million from first close investors, including Ethos Capital and Standard Bank.
It has been established in partnership with Nic Kohler and Roger Grobler, both former insurance industry CEOs.
It is the first Fund of its kind in South Africa.
“As part of Ethos’ ongoing evolution into alternative assets, we are delighted to launch the AI Fund, in partnership with Nic and Roger,” Stuart MacKenzie, Ethos CEO, said.
“This Fund will co-invest alongside other Ethos-managed Funds, originate proprietary investments, and is expected to generate differentiated value for our investors by helping our portfolio companies to navigate and benefit from artificial intelligence.”
The Fund’s aim is to identify and invest in businesses which will benefit disproportionately from artificial intelligence – specifically algorithmic decision making.