MBI at African Harvest

Magda Wierzycka, CEO of African Harvest Fund Managers, has announced that the management team and staff has acquired an additional 20% stake in the business, taking their stake to 45%, via third party financing arrangements with an unnamed bank, buying th

The management buy-in (MBI) means that they remain the largest black owned fund manager in SA, although the ratio is now 60%, as a direct black owned business, with staff holding 56% directly.

The people who participated in this transaction all got involved in a personal financing level, raising capital in their personal capacity.

Wierzycka said that asset managers only have their people as their main assets. “You need to look after your people and make them financial partners in the business.”

Speaking to FA News Wierzycka said that there were no plans to take on a bigger portion of the Metallon stake as this would affect the BEE status of the business, although she did confirm that the management team had first right to refusal should Metallon be in the market to sell their stake.

“There are no plans to increase our stake at this time.”

Wierzycka wouldn’t disclose the value of the transaction only to say that they bought the stake at fair value and based on pe ratio calculations of their main and only listed competitor in the sector – Coronation Fund Managers.

On any future listing plans Wierzycka said that the trend internationally was for asset managers to list, but she couldn’t see the value for a local operator to list in SA.