Kagiso Tiso Holdings
AUM: $1,1 billion
KTH was created on 1 July 2011 with the merger of two leading black-owned and managed companies, Kagiso Trust Investments (“KTI”) and Tiso Group (“Tiso”). The merger created a sizeable investment company of critical mass, with access to larger transactions and increased investment portfolio diversification.
KTI: KTI was established in December 1993 as an investment company under the stewardship of the late Eric Molobi, as a vehicle to generate sustainable, long-term financial support for Kagiso Trust (KT). Initially focused on purchasing minority equity stakes in unlisted companies that promised exceptional growth opportunities, KTI was capitalised with loan funding of R26 million from KT and JP Morgan and later with R50 million from each of Liberty Life and Nedcor Investment Bank. Remgro subsequently purchased the Liberty and Nedcor stakes. KT was the controlling shareholder of KTI.
KTI evolved into a diversified investment company with financial, industrial and mining interests. The portfolio of businesses was restructured into three pillars namely financial services, resources and industrial. The core business areas of the financial pillar were investment banking services, life insurance and short-term insurance. The resources pillar included a joint venture in a platinum mine. The industrial pillar focused on media and ICT services, and the industrial sector.
Tiso: was established in 2001 and was one of South Africa’s leading black-controlled and managed investment companies. Founded by leading African entrepreneurs, David Adomakoh and Nkululeko Sowazi, it was a business largely owned and controlled by its management and staff.
Tiso also had a successful shareholder relationship with financial institutions such as Standard Bank, Investec, Rand Merchant Bank and the Liberty Group, which provided the seed capital to form the company. Over time, Tiso built a strong and defensive investment portfolio, with stakes in blue-chip companies in the infrastructure and natural resources sectors. Its portfolio also included strategic holdings in construction, steel supplies, coal, industrial minerals, mining services, power and property development firms.
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