Blue Ink Investments acquires 100% stake in Legae Capital

Blue Ink Investments (Blue Ink), one of South Africa’s most established fund of hedge funds managers with almost R3 billion funds under management, has acquired full ownership of Legae Capital, following its purchase of Legae Securities’ 43% and Fatima Vawda’s 10% shareholding in the company. The purchase, for an undisclosed amount, will add to Blue Ink’s existing 47% stake in Legae Capital.

Legae Capital is one of the main providers of fund of hedge fund products to institutional clients in South Africa, with a range of products across the risk spectrum. The company, which has more than R1.5 billion in hedge fund assets under management, is the result of a joint venture in 2004 between Blue Ink, Legae Securities and Fatima Vawda, enabling Blue Ink to widen its customer base to include institutional clients.

Following its purchase of the minority stakes in Legae Capital, Blue Ink will continue to manage these institutional assets under the Blue Ink banner.

“Current clients will see no change in the investment management process that has been in place since inception,” says Esmarie Strydom, CEO of Blue Ink Investments. “The client relationship management and other operational functions will now be repositioned within Blue Ink Investments, although the underlying legal structures will not change.”

Strydom says the transaction is a continuation of Blue Ink’s restructuring, following Sanlam and Octane’s purchase of the company in 2007.“We believe current market conditions provide a lot of opportunity for the South African hedge fund market, as investors continue to seek diversification and a reduction in the risks of their portfolios.”