Standard Bank provides strategic funding support to one of South Africa’s largest black asset managers

Prescient Holdings (‘Prescient’) is a diversified, global financial services group with a 25-year track record of providing solutions to clients in asset management, investment administration and platform services, retirement solutions and stockbroking. Prescient Group has R132.4 billion in assets under management and over R1 trillion in assets under administration.

Sithega Holdings (‘Sithega’) is a black-owned and black-run investment holding company with a vision to create a platform which enables financial freedom to be accessible to all. The company focuses on asset management, life insurance and short-term insurance and has a team with a proven record of accomplishment and experience in the South African financial services industry.

This transaction aims to support the growth and expansion of Prescient by empowering its management team and increasing the participation of BEE partners in the company's ownership. The upsizing in shareholding was facilitated by Stellar Capital Partners selling its economic interest in Prescient, and the increased interests of Sithega and the Prescient Staff Share Scheme in Prescient are envisioned to strengthen their involvement and influence as shareholders.

The transaction exemplifies the Standard Bank Structured Capital team’s ability to provide bespoke and innovatively structured financing solutions to facilitate the realisation of Prescient’s growth ambitions.

Prescient Holdings Group CEO, Willem Venter, says: “This is another important milestone for the business and coincides with the Prescient Group celebrating its 25th anniversary and reaching R1 trillion in client assets under administration this year. It is exciting to know that staff who have a strategic impact on the business’s growth now own a quarter of the business, an achievement that aligns with our vision to achieve meaningful employee economic participation.”

Sithega MD Thabo Dloti says: “We welcome the opportunity to increase our shareholding in Prescient, which is the foundational building block of Sithega’s vision to provide end-to-end financial solutions to the broader South African market. Sithega and Prescient have a shared belief in the crucial role employees play in delivering on this vision, and thus it’s only fitting that they have ownership in a business they are helping to build. We appreciate the role the Standard Bank team has played in enabling us to execute on this important transaction towards achieving our vision.”