Regiments Capital acquires 41% of Risk Monitor Group
Regiments Capital announced that it has acquired 41% of the Risk Monitor Group (RMG), a multi disciplinary health and HIV/AIDS risk management company.
Regiments Capital acquired the 41% stake in RMG from Channel Life, a Sanlam and PSG Group subsidiary for an undisclosed amount. The remaining 59% of RMG is owned by executive management and staff. The transaction is effective immediately and Regiments Capital will hold the interest in RMG via a wholly-owned subsidiary, Regiments Health and Wellness. Regiments Capital has an option to increase its shareholding to a controlling interest.
Regiments Capital used their own cash reserves for this transaction. “The Risk Monitor Group is a strategic investment for us as this is a key business focus for Regiments Capital. We have identified Health and Wellness as a key focus area for investment and expansion of our advisory business and services. The actuarial and risk management services of RMG are complementary to our financial advisory services.” said Litha Nyhonyha, Executive Chairman of Regiments Capital.
Izak Fourie, founder and chief executive of RMG, said: “We believe that there is considerable potential for growth in a rapidly changing healthcare environment and, with our new BEE partners, look forward to extending our skills and services to the South African public health sector”.
The new board of RMG will consist of Litha Nyhonyha as non-executive chairperson, Izak Fourie as the chief executive with Ntuthuko Bhengu, Eric Wood and Milton Streak as directors. Dr Shane Dorfman will be an alternate Director.
Dr Shane Dorfman, managing director of Regiments Health & Wellness, said “I believe the combination of RMG’s strong actuarial and health economic IP, added to our own healthcare and financial intellectual capital will create a formidable combination, allowing us to provide an array of key services to an industry currently undergoing structural and regulatory flux. Not only will we be in a prime position to provide real, accurate data essential for costing and risk mitigation - particularly as the industry moves towards alternative reimbursement models, but also provide information and solutions as the demand side of the curve increases due to rising disease burden from the likes of HIV/AIDS”.
Regiments Capital is an independent BEE investment and advisory services group. It focuses on investments in sectors like construction and construction related businesses; telecommunications; resources; financial services; property and healthcare, that stand to benefit from the large infrastructure budgets that have been announced by both the public and private sectors. Regiments Capital also provides advisory service in the areas of debt origination; treasury solutions and structured advisory services. Regiments Health & Wellness is a unique healthcare company functioning in the healthcare investment banking and project space. It typically looks to invest in companies that not only offer good stand-alone value but also act synergistically will the rest of the business. This is a significant BEE deal in this sector as RMG is one of the few companies to offer comprehensive services in this value chain.
