Old Mutual education fund reaches second close
Old Mutual education fund reaches second close
The Education Investment Impact Fund of South Africa (EduFund), managed by Old Mutual Alternative Investments, has reached its second close after securing new capital commitments of ZAR825 million.
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The Education Investment Impact Fund of South Africa (EduFund), managed by Old Mutual Alternative Investments (OMAI), has reached its second close after securing new capital commitments of ZAR825 million (c. $44.4 million).
EduFund’s total commitments now surpass the ZAR1.2 billion (c. $64.5 million) mark. This milestone has been achieved with contributions from three new investors – the Namibian Government Institutions Pension Fund, the National Fund for Municipal Workers, and Rand Mutual Assurance – on top of an existing commitment from Old Mutual Life Assurance Company (South Africa).
Commenting on the fundraise, Ian Mason, head of impact investing at OMAI said, “We make commercial investments that make a positive contribution to the development of South Africa, with a focus on social infrastructure and financial inclusion. We are immensely pleased to have attracted capital commitments from such highly regarded institutional investors, who share our commitment to investing with purpose.”
EduFund’s objective is to provide investors with competitive risk-adjusted returns by making investments that improve the quality of education in South Africa across selected sub-sectors and market segments. It also seeks to make a positive social impact by contributing to employment creation, transformation, and environmental sustainability.
Established in 2020 and targeting total investor commitments of ZAR1.5 billion (c. $80.7 million), EduFund is OMAI’s second education impact fund, building on the success of its predecessor fund with an expanded mandate, including independent schools, tertiary education, and ancillary education services, with a focus on the affordable and middle Income market segments.
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