Brait lifted its net asset value a share by an outstanding 141% - from R31.95 to R77.12 - in the year to March, thanks mainly to the sale of its 37% interest in Pepkor to Steinhoff. South Africa's largest private equity company, led by John Gnodde, revealed this week that gains from investments for the year shot up to R27.1-billion from a restated R17.2-billion the year before.However, the annual results did not reflect the buying spree the group has embarked on since scoring R30-billion from the sale of its Pepkor stake.Gnodde acknowledged this, saying: "It's a fair comment."story_article_left1He said the next chapter for the group started in April, when Brait bought 80% of health club operator Virgin Active for R12-billion and 90% of UK fashion chain New Look for R14-billion.The two purchases will now be the cornerstone of its investment portfolio.Brait views Virgin Active as a "well-positioned defensive consumer business" with predictable earnings and reliable cash generation as most customers pay for gym membership through debit orders.The health club's operating cash flow grew from £86-million (R1.67-billion) in 2012 to £90-million last year and total revenue for the first quarter of this year grew 2% year on year.Sasha Naryshkine, a fund manager at Vestact, described the investment as "fabulous", saying the group would benefit from people becoming increasingly health-conscious.New Look is regarded as well placed in the value retail category. It has outperformed the overall UK clothing market for more than a decade on the back of increasing demand for affordable fashion and the growing popularity of e-commerce.Gnodde is optimistic about New Look, which is targeting an aggressive roll-out in China. Although the Chinese business has not broken even yet, Gnodde has confidence in it.story_article_right2Brait launched a £1.2-billion bond to refinance New Look's debt to reduce its interest costs.Brait plans to sell its 6% stake in Steinhoff, which it acquired as part of the Pepkor deal. T his disposal may happen only after the furniture group has concluded its Frankfurt listing .Michele Santangelo, a portfolio manager at Vunani Private Clients, said it was surprising that the group planned to sell its stake so quickly. "They looked at it [taking a Steinhoff stake] as a way of getting the deal done."Gnodde said Brait had the capacity to do more deals but those would not happen immediately. "We'll execute when we deem it to be right."Gnodde is keen to buy companies with strong brands, that are market leaders, have high growth, very good cash flow and management that will work well with Brait. He is also seeking businesses that have done well in their home market and can succeed in foreign markets.Santangelo said Brait would find the most opportunities for undervalued assets in Europe.In the three years to March, the group realised a compound annual growth rate in net asset value a share of 55.3%. Gnodde said the target was 15% and that this could be beaten...