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Trustco Group, an investment holding company majority owned by Namibian businessman Quinton van Rooyen and his family, has unveiled a landmark partnership with Riskowitz Value Fund (RVF), injecting up to $100 million in hybrid capital.
The six-month non-exclusive partnership aims to fuel growth, broaden shareholder base, and capitalize on undervalued market opportunities. This strategic move aligns with RVF’s investment strategy and presents an attractive opportunity for the South African private equity firm, renowned for its focus on undervalued and turnaround situations.
Strategic alliance aims for growth
Quinton van Rooyen, Trustco’s deputy CEO, highlighted the complementary nature of the collaboration. “RVF’s proven track record and in-depth understanding of global markets make them a valuable asset as we explore strategic investment opportunities,” he said in a statement.
The partnership aligns with Trustco’s active pursuit of new capital sources, particularly in the wake of the decline in its market capitalization in recent years. Given RVF’s expertise in undervalued and turnaround situations, Trustco views the alliance as a confident step towards its next phase of significant growth.
Trustco cautioned that the transaction’s success with RVF could have a material impact on its share price. As of April 16, 2024, Trustco’s shares closed at R0.22 ($0.0115) on the Johannesburg Stock Exchange (JSE), potentially reflecting fluctuations in response to the strategic partnership.
The van Rooyen family’s strong ownership
Trustco Group, a Windhoek-based financial services group, operates across banking, insurance, property, and wealth management. The group boasts a historically strong investment portfolio with a well-balanced asset allocation. On average, 34 percent of Trustco’s assets are denominated in U.S. dollars, with the remaining 66 percent invested in Namibian dollars.
The van Rooyen family holds a significant 63.94-percent ownership stake in Trustco, representing 1,004,000,060 ordinary shares. This stake makes van Rooyen one of Namibia’s wealthiest individuals. Despite a 37-percent decline in net asset value per share (NAVPS) for the 12 months ended Aug. 31, Trustco closed the year with NAD1.15 billion ($60.62 million) in shareholders’ equity.
