NtisoAkhona, 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) Ltd., the largest unit trust management company in Africa, with R650 billion ($40 billion) in assets under management.

The investment expands NtisoAkhona’s relationship with Apex Group, FundRock’s parent company, and gives the consortium a larger ownership position in one of South Africa’s biggest providers of collective investment scheme management services. The deal also supports Apex Group’s Black ownership commitments in South Africa, one of its key markets.

NtisoAkhona is already a shareholder in other Apex Group businesses in South Africa. Through the latest transaction, the consortium is increasing its investment in the group and strengthening its position within Apex Group’s Broad-Based Black Economic Empowerment (B-BBEE) ownership structure.

Greenpoint Capital provided funding for the transaction and will continue to work with NtisoAkhona as a funding partner, supporting the consortium’s plans to make further investments.

FundRock South Africa expands local ownership

Peter Hughes, founder and chief executive officer of Apex Group, said the deal reflected the company’s confidence in South Africa and its commitment to local ownership.

“South Africa is one of Apex Group’s most important markets globally and a key driver of our long-term growth strategy,” Hughes said. “Expanding our relationship with NtisoAkhona reflects our confidence in South Africa, our commitment to meaningful local ownership, and our shared ambition to continue building a stronger business for our clients, our people, and our partners.”

Jonas, chairman of Ntiso Investment Holdings, said the consortium was pleased to deepen its relationship with Apex Group through the investment.

“Apex Group has consistently demonstrated its commitment to South Africa through investment in people, local capabilities and innovation,” Jonas said. “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.”

NtisoAkhona extends Apex Group partnership

The transaction follows an earlier investment by the two groups in Apex Group’s South African operations. In October 2023, a 100% Black-owned consortium led by Akhona Group, backed by Gosa, and Ntiso Investment Holdings, backed by Jonas, acquired a minority stake in Apex Fund Services from Ditikeni Trust.

At the time, Gosa said the consortium was attracted to Apex Group’s focus on developing South African talent and its plans to use the country as a base for serving clients around the world.

“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, which will have a positive impact for much-needed jobs in our country,” Gosa said.

Jonas described the 2023 transaction as an important entry into the financial services industry for Ntiso Investment Holdings and said the group expected to work closely with Apex Group on growth and development in South Africa.

“We see this as a milestone entry into the financial services sector for Ntiso Investment Holdings,” Jonas said at the time. “We look forward to working with Peter and Apex Group, as we jointly drive meaningful growth and development in the South African financial services sector.”

The latest investment gives NtisoAkhona another stake in Apex Group’s South African business while extending a relationship that began with the 2023 acquisition. FundRock Collective Investments remains one of the country’s largest managers of collective investment schemes, overseeing about R650 billion ($40 billion) in assets.