Ubuntu-Botho Investment Holdings acquites 25% stake in SA hedge fund manager, Blue Ink Investments

(From left to right) Esmarie Strydom (CEO Blue Ink Investments); Johan van der Merwe (Chief Executive: Sanlam Investment Management); Patrice Motsepe (Ubuntu-Botho Chairman); Johan van Zyl (Sanlam Group Chief Executive); Dr Rejoice Simelane (CEO Ubuntu-Botho Holdings)

Ubuntu-Botho Investment Holdings (UBIH), which is led by Patrice Motsepe, has acquired a 25% stake in Blue Ink Investments, one of South Africa’s leading fund of hedge fund managers with almost R3bn of funds under management.

UBIH’s 25% stake was acquired from Swiss-based alternative asset manager - Octane Holdings - for an undisclosed amount. Following the transaction, Blue Ink Investments will be 50% Sanlam owned, while Octane and Ubuntu-Botho Investment Holdings will each own a 25% stake.

Patrice Motsepe, UBIH’s chairman, says this is another step by the successful partnership between UBIH and Sanlam and the partnership will contribute to further enhancing Blue Ink Investments as a leading fund of hedge fund provider in South Africa.

“Our broad based empowerment shareholders will benefit from this transaction. Poor and unemployed South Africans will also benefit through the Sanlam Ubuntu-Botho Community Development Trust."

Ubuntu-Botho Holdings (UBH) owns 55% of UBIH and the shareholders of UBIH comprise of various broad based interest groups who represent shareholders in South Africa’s nine provinces and includes women, church, trade unions, youth, traditional and community leaders and small and micro business owners. Sanlam Black Management employees are also part of UBH.

Blue Ink Investments CEO, Esmarie Strydom says that working together with Patrice Motsepe and UBIH will enable Blue Ink Investments to strengthen its position in the hedge fund industry and access new business opportunities.

“We are confident that our combined networks will provide us with opportunities to attract new clients and grow our market share, particularly in the institutional market.”

Strydom adds that besides being a business imperative, this transaction will further assist and facilitate broad-based empowerment in the financial services sector and in particular, the hedge fund industry, which has been criticised for its lack of commitment to transformation.

UBIH will make an appointment to the Board of Blue Ink Investments on completion of the transaction.