Independence Day for Noah
Niche BEE stockbroking house Noah Financial Innovation has flown the coop. At a time when most companies are pulling in their belts, Noah is spreading its wings. The company has concluded a management buyout from its major shareholder and is now 100% owner-managed and majority black-controlled.
“We see opportunity in adversity,” says Noah CEO Raymond Ndlovu.
Launched six years ago as a grassroots entrepreneurial endeavour in partnership with Mettle (now a subsidiary of JSE-listed Hoskens Consolidated Investments) the firm captured headlines for its bold bid to steal a share of the local stockbroking market from the large global players that dominate it. Its innovative brand and strong BEE credentials helped it to stand out.
At the time it was 51% management-owned. Now, after 6 years of building a brand and a solid reputation, competing successfully with other institutional stockbrokers and attracting homegrown talent, Noah is taking itself to the next level. It has bought the remaining 49% stake from HCI in a cash for shares deal. Noah is a fully fledged South African-empowered company which, from today, is 100% owner-managed and majority black-controlled.
“Our empowerment credentials remain strong, not just through ownership but also through the diversity of our team and our CSI initiatives,” says Ndlovu.
One of Noah’s strengths is its brand, which stands out in the local stockbroking industry for the fact that it has real meaning.
“We’ve always thought of ourselves as a new generation South African company; we wanted to build a business that provided a home for and helped develop a new generation of SA talent,” says Noah CEO Raymond Ndlovu.
In a highly competitive industry plagued by a chronic skills shortage, attracting and retaining talent can mean survival.
“It takes talent to navigate today’s treacherous markets. We can now compete in the battle for scarce skills and talent by offering employees a piece of the Noah dream,” says Ndlovu.
Noah offers its services to the asset management industry both locally and on the larger continent. In addition to equity trading, it has a unique research model based on a network of independent research expects from across the globe archly named ARC (Associated Research Consultants).
Like its namesake, Noah sees possibility on the horizon and is particularly bullish about opportunities on the African continent. “We see enormous opportunities to service institutions on the continent in addition to the local market.”
HCI director Andre van der Veen says: “We’ve been very happy with Noah’s progress and with the return on our investment to date. The business has gone from strength to strength over the past 6 years and is well poised for a new level of growth based on a solid foundation. We’re pleased to facilitate the sale at a time when the business is on a sound footing and are confident of Noah’s success in the future.”
