Futuregrowth's empowerment partnership with AIH becomes effective

In March this year, Futuregrowth announced the signing of a share sale agreement for the acquisition of 21.2% of Futuregrowth shares by African Women Chartered Accountants Investment Holdings (Pty) Ltd (AIH), a wholly black women-owned investment company. The company announced that all the conditions precedent for the transaction had been met, with payment for the shares having taken place and the share transfer effected on 30 June 2022.

The transaction involves the purchase of Futuregrowth shares from Old Mutual Investments Holdco by a special purpose vehicle owned by AIH and AIH Capital (Pty) Ltd.

Together with the existing shareholdings of Futuregrowth’s black staff, the Imfundo educational trust and Old Mutual Investments Holdco’s black shareholding, Futuregrowth’s effective black shareholding now stands at 49.6%.

“Through this transaction, AIH has shown confidence and trust in Futuregrowth. We are excited about this next phase in Futuregrowth’s journey with AIH as our partner. Futuregrowth’s success can significantly contribute to helping AIH’s aspirations come true. It is fantastic that through this partnership we can directly contribute to increasing the pool of black woman chartered accountants in South Africa, which is so relevant for the transformation of the asset management industry,” says Paul Rackstraw, managing director of Futuregrowth.

Sindi Mabaso-Koyana, founder and chairperson of AIH adds, “It is official, AIH are 21.2% shareholders of Futuregrowth, one of South Africa’s largest asset managers that does not only invest with a conscience, but applies this to everything they do. We are proud to have closed this transaction, meeting all conditions precedent two months ahead of our target date of 31 August. We are looking forward to a partnership of future growth.”

Mabaso-Koyana has joined the Futuregrowth board with immediate effect.

AIH was formed in 2008 to support the financial needs of African Women Chartered Accountants (AWCA) by making long-term investments across various economic sectors. AWCA is a non-profit organisation founded in 2002, whose purpose is to facilitate the entry of black women into the chartered accountancy profession and accelerate their advancement to South African leadership positions. AIH is 100% black women-owned, and the majority of its 53 shareholders are chartered accountants and business leaders. Ten per cent of AIH’s net profits are donated to AWCA to further its mission. The acquisition of a minority stake in Futuregrowth is AIH’s largest investment to date and has the ability to make a major positive contribution to AWCA’s mission.