RMB Corvest, the private equity arm of SA’s most valuable group, FirstRand, has invested in leading education finance specialist Fundi as education-focused businesses become increasingly popular in the private equity space.
The transaction is being pursued in partnership with Thuto Fund 1, joining the likes of the Public Investment Corporation as shareholders in Fundi, alongside the founding Kitshoff family.
RMB Corvest said Fundi, which has been in existence since 1996, has assisted more than 2-million students in pursuing their higher education dreams.
“Fundi offers comprehensive funding solutions for education to students, government employees and corporate clients. Its product offering covers a range of educational costs from tuition fees, device loans, study material, food and student accommodation costs,” the private equity firm said.
Fundi, founded by Jan Kitshoff nearly 30 years ago, initially went to market as Edu-loan. Kitshoff’s son, Jan Jnr, is the company’s CFO, with Mala Suriah occupying the CEO seat.
RMB Corvest is a private equity company offering on-balance sheet equity and debt funding packages for medium to large leveraged buy-outs and buy-ins, management buy-outs and buy-ins, BEE transactions and growth capital solutions.
Menzi Khoza, an executive at RMB Corvest, said that Fundi’s offering and experienced management team made it an attractive investment opportunity.
“Given the huge need for Fundi’s products and services in SA and the value of education, we believe that the business has a solid base, well-developed infrastructure and a large, well-diversified customer base. It promises valuable growth and we foresee sustainable advancement in the education sector,” Khoza said.
Fundi has several retail branches nationwide with a presence on 23 campuses at various universities.
Jan Kitshoff Jnr said: “We’re looking forward to partnering with our new shareholders to continue to exceed our customers’ expectations and develop our offerings. Fundi’s products and services remain our focus and we believe that the value of education in SA can be used as a tool for economic growth and societal and personal development.”
Old Mutual Private Equity last month acquired a majority shareholding in Honoris United Universities, the first and largest pan-African private higher education platform.
Honoris operates in 10 African countries, across 26 cities, and partners with more than 250 universities worldwide, offering a platform that is locally grounded and globally connected.
RMB Corvest, in partnership with Dlondlobala Capital, recently concluded a successful management buyout of Nampak Liquid Cartons, a division of JSE-listed Nampak.
