South Africa: Harith acquires significant stake in Mergence Investment Managers

Harith General Partners and an independent women’s group are jointly acquiring a 51% stake in South African institutional fund manager Mergence Investment Managers.

Harith is a pan-African investor and developer of infrastructure projects.

Mergence is an institutional fund manager with a 19 year track record across both private and public markets within the SADC region. The company was founded by Masimo Magerman. It offers a range of investment management services to institutional clients, including pension funds and insurance companies, and has a geographical footprint that extends to Lesotho and Namibia. Mergence currently has R37 billion ($1.9 billion) in assets under management.

“The numbers currently don’t stack up well for Africa when it comes to the investment needed for its growing infrastructure needs,” said Harith CEO, Sipho Makhubela. “But, we know from experience that African capital, when expertly raised, targeted, and deployed, has tremendous potential to change this picture and respond to these challenges. This is why we did this deal, to grow Mergence as a financial services business.”

Sholto Dolamo, managing director of Mergence Investment Managers said, “Infrastructure investment has been singled out by government as a catalyst for economic growth. This consolidation leverages Mergence’s footprint for expanded reach and new investment opportunities.”

“Notably, we bring to the table experience in water investment, being the only investment manager with a stake via a public-private partnership in the only two privately-held water concessions in South Africa,” added Dolamo.

The transaction must still be approved by South Africa’s Competition Commission.

* Subscribe to Africa Private Equity News’ monthly Dealmaker’s Log for a database of the reported investment deals, exits and fundraising closes. Click here for more information.