20 March 2023
Apis Growth Fund I announces investment in Efficient Group Limited, a leading South African asset management and advisory
Apis Growth Fund I (the “Fund”), a private equity fund managed by Apis Partners LLP (“Apis”), has entered into transaction documents relating to the subscription for shares of Efficient Group Limited (“EFG”)
EFG is a South African financial services company providing a range of solutions to the investment management industry, including asset administration, asset management, financial products distribution, and financial advisory services to institutional and retail clients
Simultaneously, the Fund has made a non-binding offer to acquire the shares of minority shareholders of EFG, and to subsequently delist the Company from the JS
London – 29 July 2019: Apis Growth Fund I (“Fund”), a private equity fund managed by Apis Partners LLP (“Apis”), has entered into transaction documents for subscription of 27.8 million newly issued shares of EFG for a total consideration of ZAR 125.0 million (the “Share Issue”). Subsequent to this Share Issue, the Fund is expected to become the largest individual shareholder in the Company with 23.8% of the total shares outstanding. The transaction remains subject to regulatory, JSE, and Company shareholder approvals.
EFG is a leading asset management and advisory firm providing a range of solutions to the investment management industry, including asset administration services, asset management services, financial products distribution, and professional financial advice to both retail and institutional investors in South Africa. It operates the largest co-branded asset administration platform in South Africa, Boutique Collective Investments (BCI), which enables wealth managers and financial advisors to offer a range of investment funds to their clients. In addition, EFG has a network of more than 200 registered financial advisors servicing over 69,000 clients across South Africa.
EFG was founded in 2002 as an asset management firm and listed on the JSE in 2009 to support the build-out of its retail distribution network. The management team, under the leadership of Heiko Weidhase, the CEO and Co-Founder, has overseen EFG’s growth since it was founded, and will remain a key player in EFG following the proposed series of transactions.
EFG has recorded significant growth in recent years, with assets under its control (administered, managed, consulted, or advised on) growing from $0.7 billion in August 2013 to $12.4 billion in February 2019. EFG has benefited from the rapid growth of boutique asset managers in South Africa, its superior client service, and the attractive pricing of its products to build a strong position in its target markets. Apis believes the application of technology coupled with regulatory changes will create an opportunity for EFG to build on its leading position in order to expand its product base, grow its distribution capabilities and serve registered financial advisors and their clients more efficiently.
The Fund has also made a non-binding offer for the buyout of minority shareholders of EFG, followed by a potential delisting from the JSE through a Scheme of Arrangement. Apis and EFG’s management believe that delisting from the JSE will allow EFG to pursue its long-term growth initiatives, raise capital more efficiently, eliminate public listing costs, and rapidly respond to market changes. Any subsequent transaction will be subject to the agreement of binding transaction documents with any remaining shareholders, and regulatory, JSE, and minority shareholder approvals.