NtisoAkhona buys stake in FundRock, Africa's biggest unit trust firm with $40B in assets

What's the deal? NtisoAkhonaDealroom has a profile for this one. Try Dealroom →, a Black-owned investment consortium led by South African business leaders Noluthando Gosa and Mcebisi Jonas, has acquired a minority stake in FundRock Collective Investments (RF) (Pty) LtdDealroom has a profile for this one. Try Dealroom →. The company is the largest unit trust management firm in Africa, with R650 billion ($40 billion) in assets under management.

What's the endgame? The deal expands NtisoAkhona's relationship with Apex Group, FundRock's parent, and gives the consortium a larger position in one of South Africa's biggest providers of collective investment scheme management. It also supports Apex Group's Black ownership commitments in South Africa, a key market.

Why now? NtisoAkhona is already a shareholder in other Apex Group businesses in South Africa. The latest transaction strengthens its standing within Apex Group's Broad-Based Black Economic Empowerment (B-BBEE) ownership structure. Greenpoint CapitalDealroom has a profile for this one. Try Dealroom → funded the deal and will remain a funding partner for further planned investments.

Peter Hughes, founder and chief executive officer of Apex Group, tied the deal to the firm's confidence in the country. “South Africa is one of Apex Group's most important markets globally and a key driver of our long-term growth strategy,” he said.

Jonas, chairman of Ntiso Investment HoldingsDealroom has a profile for this one. Try Dealroom →, said the consortium was pleased to deepen the relationship. “We look forward to supporting FundRock Collective Investments South Africa in its next phase of growth while continuing to deliver long-term value for clients and stakeholders,” he said.

The backstory: The transaction builds on an earlier deal. In October 2023, a 100% Black-owned consortium led by Akhona GroupDealroom has a profile for this one. Try Dealroom →, backed by Gosa, and Ntiso Investment Holdings, backed by Jonas, acquired a minority stake in Apex Fund ServicesDealroom has a profile for this one. Try Dealroom → from Ditikeni TrustDealroom has a profile for this one. Try Dealroom →.

At the time, Gosa said the group was drawn to Apex Group's plan to use South Africa as a global service hub. “What attracted us to Apex Group is its support for South African talent, demonstrated by Peter's vision to make the South African business a hub from which to service its clients globally,” she said.

The signal: The deal reflects a growing appetite among Black-owned South African consortiums to build stakes across the financial services sector, using B-BBEE structures to expand local ownership in globally connected firms.

Read more: shore.africa

Image credit: Generated with Gemini