Through its Old Mutual Private Equity and Impact Investing divisions, Old Mutual Alternative Investments (OMAI) is driving business growth that delivers social impact alongside shareholder value, epitomising the type of shared value business model that will help South Africa progress into an inclusive society.
Investing in a better future
Impact investment through Old Mutual Alternative Investments (OMAI), entities actively pursues a meaningful contribution to the UN’s Sustainable Development Goals, with the aim of creating social and environmental impact together with risk-adjusted returns for its investors. For example, OMAI helped Sizwe Nxasana build his Fleurhof Future Nations schools through their education impact investment fund.
Independent education was once the domain of the affluent. However, innovative models that bring private sector investment to cater to the increasing demand around education infrastructure and quality learning opportunities for South African youth are changing that dynamic.
Cernell Moya, a grade 12 student at Fleurhof, never believed he would be able to attend an independent school. Having access to these facilities has changed the way he learns and feels about education, and his vision for the future is bright.
OMAI’s ongoing commitment to investing with impact extends further than education. The Old Mutual Private Equity division emphasises tangible personal involvement and support required to grow the businesses in the portfolio.
During SAINC’s visit to Fleurhof, the team had the opportunity to call on Footgear in Access Park, Cape Town, to learn from the various stakeholders about the phenomenal growth of this business – not only in access for customers but job creation too.
Impact investing is indeed at the nexus of profit and purpose, and stories like these prove that win-win initiatives are fully within our grasp.
STORIES
Sizwe Nxasana retired from a corporate career and decided it was time to give back. He wanted to create a learner-centred project based on the education environment that would enable disadvantaged youth to flourish. However, more than that, he wanted to facilitate the development they needed in order to step boldly into a future that is not yet understood.
He felt that the current schooling system in South Africa was not preparing children in a world that is driven by technology. With these kinds of technological-advanced campuses, costing in the region of R100 million to develop, he needed a solid financial partner with not only the necessary funding but also the business acumen to run the school profitably.
OMAI helped him to achieve this. Through Future Nations’ network of independent schools, they aim to lead the African education revolution through relevant, futuristic, and technology-enabled education with Old Mutual Alternative Investments by their side.
“It is about how we create hope in our country.”
Cernell Moya never believed he would be able to attend a private school, and certainly not one that would be close to where he lived. Future Nation Schools (FNS) Fleurhof School is in the south-west region of Johannesburg in the Fleurhof residential area within reach of Soweto, Florida, Johannesburg South, Lenasia and Roodepoort. When OMAI assisted with the funding of the R70mil modern school campus in Fleurhof, Moya’s life took a 360 degree turn.
From his previous school, where he was one of 45 students sharing desks and stationery, he became one of 16 students with access to state-of-the-art facilities in a technology-driven environment. For the first time, he was able to concentrate properly, hear every detail of every lesson clearly and excel academically. Completing his matric was no small feat as he is the first person in his family to do this. And with his excellent results, he has his sights set on actuarial science and his future looks bright.
“I’m the first one to actually finish matric,” said Moya.
Niel Stephens is the CEO of Footgear. His first Footgear store opened in Access Park, Cape Town, in 2001. In 2018, there were 63 stores and there will be 250 stores by 2023. This phenomenal growth has resulted from Stephens’s partnership with Old Mutual Private Equity. It is one of the largest and most established private equity managers in South Africa and Africa. Through funding and stewardship, they make the businesses they own more valuable. Footgear now has 1200 permanent employees, up from 484 employees at the time of Old Mutual Private Equity’s investment.
The rule of thumb is that for every person employed, there are five people who rely on that person, creating a real impact on real lives. One such life is that of Ashton Lawrence, who joined Footgear in 2011. At the time, he was living in a wendy house in somebody’s backyard with his wife and two children. Today, he is the area sales manager in charge of 60 stores in the greater Cape Town area and recently purchased his own home.