Old Mutual Alternative Investments

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.

It is about how we create hope in our country.

The People

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Sizwe Nxasana – Founder Future Nation Schools

Sizwe Nxasana retired from a corporate career and decided it was time to give back. He wanted to create a learner-centred project-based education environment that would enable disadvantaged youth to flourish. But more than that, he wanted to facilitate the development they needed to step boldly into a future we do not yet understand. 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 technologically 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 necessary 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 OMAI by their side.
“It is about how we create hope in our country”

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Cernell Moya – Grade 12, Class of 2021 Future Nation Schools

Cernell Moya never believed he would be able to attend an independent 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 a 70-million Rand modern school campus in Fleurhof, Cernell’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 the future looks bright.
“I’m the first one to actually finish matric”

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Niel Stephens – CEO of Footgear (60 Sec)

Niel Stephens is the CEO of Footgear. He had a vision of offering branded sports, lifestyle and performance footwear across all genders and ages at affordable prices, with a high service element. His first Footgear store opened in Access Park, Cape Town in 2001. By 2018, there were 63 stores, and by the beginning of 2023, there will be 250 stores. This phenomenal growth has resulted from Niel’s partnership with Old Mutual Private Equity, one of the largest and most established private equity managers in South Africa. OMPE is more than a financial partner. When OMPE invests, it partners with management through active ownership, aimed at growing and transforming businesses, which ultimately makes them more valuable. With OMPE’s cash injection and stewardship, Footgear was able to significantly increase its store footprint, which meant more jobs for SA citizens. Footgear now has 1200 permanent employees, up from 484 employees at the time of OMPE’s investment.
The rule of thumb is that for every person employed, there are five people who rely on that person, creating meaningful impact on people’s lives. One such life is that of Ashton Lawrence who joined Footgear in 2011. At the time of joining Footgear, he was living in a wendy house with his wife and two children. Today, through Footgear’s leadership and skills development, Ashton is the Area Sales Manager in charge of 60 stores in greater Cape Town and recently bought his own home.

Old Mutual Private Equity practices active ownership, providing the support and capital required to grow and transform businesses under their stewardship

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The Story

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Independent education was once the domain of the affluent, but 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.

Old Mutual Private Equity (“OMPE”), also part of OMAI, pursues a meaningful contribution to the UN’s Sustainable Development Goals, with a key focus on the growth and transformation of businesses, through active ownership, whilst providing investors with risk-adjusted returns. SAINC also had the opportunity to call on Footgear, a portfolio company of OMPE. Situated in Access Park, Cape Town, we learned from its various stakeholders of the phenomenal growth that this business has experienced since its partnership with OMPE, not only in terms of broader access for customers, but job creation too.
Impact investing through private equity is indeed at the nexus of profit and purpose and stories like these prove that win-win initiatives are fully within our grasp.